Fuel Price-In Pakistan

 Fuel Prices in Pakistan

 


The Pakistan Govt. has already a massive increase of Rs60 per litre in petrol and diesel prices, which became effective a fortnight ago. It’s put extra pressure on the cost of living, which has already soared owing to rising food prices and bloating bills of electricity and gas.

The New government has raised the price of petroleum products by more than Rs84 per litre in the last 20 days.

As per Govt. Official next three to four months will be hard for people as the government will try to meet the IMF condition of raising the petroleum levy as well as charging the GST on all oil products.

The government had a big challenge to rescue the country from all challenges. “If we don’t increase oil prices, and other related costs the country could face a default situation.”

When Govt increase of Re1 per litre in oil prices has, at current prices and even generally, an impact of 1% on consumer prices.

The Total consumption of petrol and diesel in Pakistan is around 16 million tons or 200 billion litres.

A tax of Re1 per litre earns the government Rs200 billion. It is the easiest way to collect taxes as opposed to others. In the case of electricity, a tariff increase of Re1 per kilowatt-hour has an impact of Rs100 billion or slightly higher.

Pakistan consumes 556,000 barrels per day (B/d) of oil as of the year 2016. Pakistan ranks 33rd in the world for oil consumption, accounting for about 0.6% of the world's total consumption of 97,103,871 barrels per day. We import oil 140,097 per day with rank 53rd in the world.

Pakistan Oil Consumption was reported at 437.337 Barrel/Day th in Dec 2020.( Covid Situation)

We have the Oil Reserve of 353,500,000 barrels 52nd in world rank. We produce 88,262 per day which is 53rd in world rank. We import oil 140,097 per day.

Fuel Prices Change break up in Pakistan – with Govt Change

W.e.f : 27-May-2022

PRODUCT

CURRENT PRICE (PKR)

NEW PRICE (PKR)

Change (PKR)

Petrol

149.86

179.86

30

High Speed Diesel (HSD)

144.15

174.15

30

Kerosene Oil

125.56

155.56

30

Light Diesel Oil (LDO)

118.31

148.31

30

 

 

W.e.f : 03-June-2022

PRODUCT

CURRENT PRICE (PKR)

NEW PRICE (PKR)

Change (PKR)

Petrol

179.86

209.86

30

High Speed Diesel (HSD)

174.15

204.15

30

Kerosene Oil

155.56

181.94

26.38

Light Diesel Oil (LDO)

148.31

178.31

30

 

 

W.e.f : 16-June-2022

PRODUCT

CURRENT PRICE (PKR)

NEW PRICE (PKR)

Change (PKR)

Petrol

209.86

233.00

23.14

High Speed Diesel (HSD)

204.15

263.31

59.16

Kerosene Oil

181.94

211.53

29.59

Light Diesel Oil (LDO)

178.31

207.47

29.16

 The Pakistan imports during July-February 2021-22 totaled $52.505 billion (provisional) as against $33.858 billion during the corresponding period of last year showing an increase of 55.07 percent consumption.

 Real Time Crude Oil Price


https://www.tradingview.com/chart/?symbol=NYMEX%3ACL1!




A maximum of Rs30 per liter can be charged as a petroleum development levy (PDL) under the rules. Similar is the price structure of diesel. Light diesel oil (LDO) and kerosene, taxes are not usually charged to keep prices low. 


Today –June 16 2022


Govt. of Pakistan has Taken the following Break up:

Total: 21 RS as an additional cost on Fuel

Cost

Rate

PKR

Sales Tax

2.5%

1.16

Levy

Fixed

17.62

Dealer Margin

Fixed

4

 The fluctuation in fuel prices is a big debate in Pakistan now a day. Yet, there seems to be a lot of misinformation, about how the price is determined and what factors most influence its frequent changes.

Pricing Framework

 The final price of petrol a consumer pays in Pakistan comprises six components.

Price Component

Avg % of Total Cost      

Details

 

 

 

 

 

 

Ex-Refinery Price

62.50%

The amount at which local refineries sell their product to the Oil Marketing Companies

 

IFEM

3.60%

In-land Freight Equalization Margin (IFEM) is calculated by OGRA and implemented to equalize prices throughout the country.

 

Distributor Margin

2.80%

This is the maximum margin OMCs (e.g. Total, Shell and PSO) earn per liter of petrol. In the case of petrol, this is set by the Govt of Pakistan (GOP) and notified through OGRA

 

Dealer Commission

3.70%

Set by the GOP, this is the maximum amount the owner of a petrol station earns on every liter.

 

Petroleum Levy

 

An amount collected as tax by GOP. The rate of levy is notified by the Ministry of

 

Sales Tax

 

General Sales Tax (GST) is applied as a fixed percentage on the sum of all the above components. as the Ex-Depot Sale Price.

 

 

 

 

 

 

 

 

 

source: https://macropakistani.com/petrol-pricing/

 

                    

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