As per the working by OGRA, petrol price is expected to increase by Rs9.95 per litre and high-speed diesel by Rs8.96 per litre
Islamabad: The federal government is set to release bi-weekly oil prices today, but the public is unlikely to be reassured.
Finance Minister Mikhta Ismail said on Sunday that the government could not afford oil subsidies due to International Monetary Fund (IMF) restrictions.
Geo News’ Naya Pakistan programme, the finance minister was asked whether the government plans to cut the country’s petrol prices from 15 August in line with falling international markets and the rupee’s rise against the dollar. rice field.
In response, Ismail said the country had arranged for him to borrow $4 billion on his IMF terms from friendly countries.
He added that the Treasury Department would no longer impose taxes on petroleum products, but reiterated that the government could not bear any further losses by providing subsidies.
What could be the new petrol price?
Gasoline prices are expected to rise by Rs 9.95 per litre, contrary to expectations that POL prices will fall from 16th August. 8.96 per liter, a senior Energy Department official told his The News.
Given that the local currency has risen in value by almost 20 rupees against the US dollar and oil prices have also fluctuated between US$92 and almost US$100 per barrel, the surge in POL prices is certainly a shock. will be
However, the oil industry believes that the price of petrol will rise by Rs 31.08 per liter and diesel by Rs 8.96 from 16 August.
This is one of the scenarios forecasted by the oil industry given the average exchange rate of Rs 229 in mind. Importing PSO will continue to be costly, the exchange rate will also rise, and this time petrol and diesel prices will rise as LCs were opened by commercial banks at prices higher than his SBP rate.
The Treasury Department is working to finalize the average exchange rate that will determine the exact price of MS and Diesel from 1 August 2022 onwards. Industry sources said the PSO would revise the exchange rate losses upward by Rs16 for HSD and Rs30 for petrol.
The current Petroleum Development Tax (PL) is Rs 10 per liter for diesel and Rs 20 for petrol. The petrol dealer’s margin has also been increased to Rs 7 per liter.
What is oil price formula?
Gasoline and diesel price increases will come from the existing OGRA price formula, the Platts average over the past 15 days, plus a premium for PSO vessels and ancillary import costs for PSOs, according to the oil industry. The
calculation is also based on the average dollar exchange rate over the last 15 days and includes an estimated PSO dollar exchange rate loss adjustment (according to the last two weeks price formula).
A senior Energy Department official said Mogas prices would rise from August 16 due to higher premiums and higher L/C rates, while diesel would see a smaller increase due to fixed margins and no L/C. Stated. However, after August 15th, the government will be able to set his exact POL price for the next two weeks.
Credit/Source : THENEWSPK