Title: Fuel prices likely to be slashed on May 1
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The rates of petrol and High-Speed Diesel (HSD) are expected to be reduced by up to Rs7.37 per liter due to a decline in international oil prices and premium rates, effective from May 1.
The federal government is expected to lower the price of petrol by Rs4.88 per liter and HSD by Rs7.37 per liter. The rate of kerosene oil is expected to be reduced by Rs8.03 per liter, and light diesel oil (LDO) by Rs5.37 per liter. The premium rate on petrol has fallen to $9.60 per barrel and remains steady at $6.50 per barrel for HSD.
The Oil and Gas Regulatory Authority (OGRA) is scheduled to submit its recommendations to the Finance Division for petroleum product prices on April 30 for consideration.
The price of petrol is expected to drop to Rs289.06 from Rs293.94 per liter. The new price of HSD is likely to be Rs283.01, down from Rs290.38 per liter. The price of kerosene oil is expected to decrease from Rs193.08 to Rs185.05 per liter, and the LDO price is likely to drop to Rs168.97 from Rs174.34 per liter.
In the last fortnightly review of petroleum prices on April 15, the federal government raised the price of petrol by Rs4.53 per liter, and the price of HSD was increased by Rs8.14 per liter.
Smuggled fuel
Following the request of the Oil Companies Advisory Council (OCAC), the Petroleum Division on Thursday took up the matter with the Ministry of Interior and the Federal Board of Revenue (FBR) to take appropriate measures against smuggling of Iranian oil into the country.
The OCAC’s April 9 letter addressed to the Special Investment Facilitation Council (SIFC) and the Prime Minister's Office highlighted the issue of petroleum smuggling.
It stated that this smuggling poses a grave threat to forthcoming investments in refinery expansion and upgrading of projects under the Oil Refining Policy for Upgradation of Brownfield Refineries, 2023.
“This illicit activity not only bleeds the economy but also jeopardizes the opportunity for substantial investments in refinery upgradation. The ramifications extend beyond the refinery sector, impacting the profitability of oil marketing companies, dealers, and disrupting the White Oil Pipeline operations.
“Currently, refineries are carrying huge stocks of HSD due to the availability of smuggled fuel in the market. This situation is disturbing the entire oil supply chain,” the letter stated.
Published Date: 26-Apr-2024
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