OMCs raise price of HOBC by Rs10 per litre from April 1

ISLAMABAD: The Oil Marketing Companies (OMCs) have raised the price of Hi-Octane Blending Component (HOBC) by Rs10 per litre with effect from April 1, 2024.

The Petroleum Levy (PL) on HOBC has been kept at Rs50 per litre against Rs60 per litre levied on low-grade (motor gasoline).

The international price of petrol 95 Ron remains at around $98.96 per bbl in the last fortnight against $93.96 per bbl before March 16, 2024.

The Oil and Gas Regulatory Authority (Ogra) does not control Hi-Octane petrol price in Pakistan and individual OMCs which import the fuel set its price which accounts for Hi-Octane prices varying across different petrol pumps within the country.

OMCs grappling with financial instability

After the current pricing review of petroleum products, the price of HOBC has also been increased by Rs10 per litre starting from April 1, 2024, according to the website of Pakistan State Oil (PSO).

PSO has raised the Altron X 97 Hi-Octane price by Rs10 per litre at Rs305 per litre. Attock Petroleum Company Limited (APL) is selling at Rs300 per litre Xtron Hi-Octane since February 2024. Shell V-Power Octane price is Rs300 per litre. The price difference between Hi-Octane and petrol is around Rs10-15 per litre at present.

According to an OMC estimate, the HOBC consumption is around 300 metric tonnes per day which amounts to a total consumption of 9,000 metric tonnes in a month.

The high-octane blended fuel is used by luxury and imported cars. Compared to ordinary petrol (motor gasoline) the HOBC’s main use is improved mileage and better engine performance.

Copyright Business Recorder, 2024