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Govt likely to maintain status quo on petrol, diesel prices despite decline in global rates

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1 year ago

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  • Petrol, diesel prices recorded significant decline in global market. 
  • Average price of diesel fell to around $100 per barrel globally.
  • Price of petrol dropped to $90 per barrel for next review.

KARACHI: Despite a major reduction in the international prices of diesel and petrol, the government has decided not to decrease the prices for local consumers to adjust the previous exchange losses as well as to raise taxation on the fuels, The News reported citing sources. 

The petrol and diesel prices in the global market have recorded a significant decline and average fortnight prices of both products would be taken for the next price revision on February 28, 2023.

According to the oil industry sources, the average price of diesel for the next fortnightly review dropped by $7 per barrel, which in terms of the Pakistani rupee comes to a Rs30 per litre reduction for the domestic price of diesel. The average price of diesel in the global market fell to around $100 per barrel compared to $107 per barrel in the previous fortnight.

The average price of petrol dropped to $90 per barrel for the next review of prices compared to $93 per barrel in the last fortnightly review of prices, translating into a Rs10 per litre reduction for the consumers in the local market.

Sources pointed out that rupee appreciation against the dollar in the last two weeks also helped cut the import price of diesel and petrol, as the average exchange rate dropped by Rs8 for the next review of prices.

Oil industry sources were however not hopeful about any major reduction in the prices of diesel and petrol for domestic consumers as the government was expected to adjust the exchange losses, which it did not pass on fully to the oil sector in the last many reviews.

For instance, an exchange loss adjustment of Rs88 per litre was due on diesel, but the government only transferred Rs12 per litre on this head, while the remaining was still to be adjusted. 

“It is likely that the government would pass on partially the adjustment because of getting space on the exchange rate side,” sources said.

Likewise, an exchange loss adjustment of Rs34 per litre was due on petrol, but the government only gave Rs12 per litre to the oil industry.

Sources said that under the conditions put down by the International Monetary Fund (IMF), the government might increase the petroleum levy (PL) on diesel to Rs50 per litre as it has now got room to do it. Currently, it is Rs40 per litre on diesel.

Sources expect a Rs10 per litre cut in diesel if the government does not impose GST, which otherwise would deprive the local consumers of the drop in diesel prices in the global market.

Official industry sources do not expect any reduction in the price of petrol for the local consumers, which otherwise would have been down by Rs10 as per the trends of its price in the global market.

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An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

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15 hours ago

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The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

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Business

Weekly inflation in Pakistan increased by 0.17 percent.

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15 hours ago

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The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

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Business

The price of gold has drastically dropped in Pakistan.

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2 days ago

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As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.

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