Fuel prices kept unchanged amid speculation

ISLAMABAD: Federal government has kept the prices of all petroleum products unchanged by adjusting rates of petroleum levy (PL) with effect from January 16.

On Sunday, Finance Minister Ishaq Dar said that petroleum prices would be “maintained as they are” as no changes would be seen in second half of January.

The current petrol price is Rs 214.80 per litre, high speed diesel (HSD) is being sold for Rs227.80 per litre. Kerosene oil (SKO) is currently priced at Rs171.83 per litre and light diesel oil (LDO) is presently priced at Rs179 per litre.

Some media reports claim that country is facing oil crisis threat as commercial banks have refused to open and confirm Letters of Credit (LCs) for the import of POL products. The Oil Companies Advisory Council (OCAC) had asked the finance secretary and the State Bank of Pakistan (SBP) towards the emerging situation on Saturday. In a letter to the finance secretary, the OCAC had pointed to the challenges being faced by oil companies in this respect.

Oil prices may be kept unchanged

On Sunday, Oil and Gas Regulatory Authority strongly rebutted the speculations on Petrol/diesel shortages. The regulator issued a statement on the current stock of oil and gas in the country. It says useable stocks in the country are good enough for 17 days of Petrol and 32 days of Diesel.

“Furthermore, ships carrying 80,000MT petrol (MS) and 90,000 MT HSD (Diesel) are at berth/ outer anchorage. The local refineries are also operational and playing their due role in meeting demand of petroleum products”, it says.

The OCAC says, “If LCs are not established on a timely basis, critical imports of petroleum products will be impacted, which may lead to a fuel shortage in the country,”.

According to an estimate, the price of petrol was expected to go up by Rs8.98 per litre while the price HSD might rise by Rs1.06 per litre in the fortnightly revision of petroleum product prices with effect from January 16

In the second half of January 16-31, the government decided to keep charging consumers Rs50 per litre PL on petrol and raised the PL rates from Rs32.50 to Rs 35 per litre (Rs 2.50 per litre) on HSD. The rates of PL on kerosene oil are fixed at Rs 6.22 per litre and Rs 30.45 per litre on LDO. The government is expecting to raise estimated Rs 36 billion in 15 days from PL on petroleum products. However, no general sales tax is on the sale of petroleum products.

Copyright Business Recorder, 2023