Move to cushion PSO: Exchange rate losses adjusted into petrol prices

ISLAMABAD: To cushion Pakistan State Oil (PSO) against exchange rate losses, the federal government has adjusted its fortnightly petroleum pricing, effective June 1, 2025, by reducing the Inland Freight Equalization Margin (IFEM) and slightly increasing average of Platts with incidentals and duty.

The federal government adjusted Rs2.17 per litre exchange rate losses into petrol prices which led to increase in petrol prices by Re1 per litre with effect from June 1 to 15.

With a major importer, state-owned PSO has 55 percent share in total petroleum products. The Oil and Gas Regulatory Authority (OGRA) as a regulator takes PSO cost of supply to determine the fortnightly prices of petroleum products.

As compared with previous fortnight (May 16-31), avg of platts with incidentals and duty reduced by 58 paisa from Rs150.46 to Rs151.04 per litre.

The PSO exchange rate adjustment increased from Rs1.34 to Rs3.51 per litre.

The IFEM has been brought down by Rs1.75 per litre from Rs6.30 to Rs4.55 per litre on petrol.

The price of high-speed diesel (HSD) has kept unchanged by adjusting 0.05 paisa raise in ave of platts with incidentals and duty, 20 paisa increase in PSO exchange rate with 25 paisa reduction in IFEM.

The petroleum levy (PL) on petrol and HSD has been kept unchanged at Rs78.02 per litre and Rs77.01 per litre.

Copyright Business Recorder, 2025