Petrol price up by Re1, LPG down by Rs4.62/kg
Listen to article
The federal government has raised the petrol price by Re1 for the next fortnight, while keeping the high-speed diesel rate unchanged. The new prices will be applicable from June 1.
According to a notification issued by the Finance Department, petrol will now be sold at Rs253.63 per litre while high speed diesel (HSD) will continue to be sold at Rs254.64 per litre.
The finance ministry said that the prices were based on recommendations from OGRA and other relevant ministries.
The government is focusing more on collecting petroleum levy on petroleum products to redirect to subsidize electricity prices.
It had earlier decided to fund Rs1.70 per unit subsidy for the consumers of electricity by redirecting PL collection. It also later decided to redirect PL collection to fund canal and road projects in Balochistan province.
The government has already decided to increase the petroleum levy rate up to Rs90 per litre on the sale of oil products. At present, the consumers are paying Rs78 per litre in petroleum levy on petrol and Rs77 per litre on diesel.
LPG
The Oil and Gas Regulatory Authority (Ogra) has reduced the price of Liquefied Petroleum Gas (LPG) for June 2025 in response to fluctuations in the global market.
According to an Ogra notification, the new consumer price of LPG has been set at Rs2,838.31 per 11.8 kg cylinder, down from Rs2,892.91 in May. This reflects a decrease of Rs54.60 per cylinder, or Rs4.62 per kilogram.
The regulator attributed the price reduction to a 2.67% drop in the Saudi Aramco Contract Price (CP), which directly impacts local LPG producer rates. Additionally, a slight 0.35% increase in the average dollar exchange rate was recorded.
For June, Ogra has set the revised producer price at Rs199,234.49 per ton, which stood at Rs203,861.82 in May - causing a decline of Rs4,627.33 per ton.
Irfan Khokhar, Chairman of the All Pakistan LPG Distributors Association, welcomed the reduction in LPG prices and urged the government to ensure that the official price set by Ogra is strictly enforced.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
EPA bans substandard fuel
LAHORE: The Environment Protection Authority (EPA) has imposed a province-wide ban on the use of substandard fuel in motor vehicles, declaring that no vehicle on Punjab's roads may operate using petrol or high-speed diesel that does not meet the specifications approved by the Oil and Gas Regulatory Authority (OGRA). In a notification issued by EPA Director General Dr Imran Hamid Sheikh, it was stated that violations of this order will be punishable under Section 17 of the Punjab Environmental Protection Act, 1997. An EPA spokesperson clarified that any petrol or diesel lacking OGRA-approved standards will be deemed substandard. Vehicles running on such fuels will be prohibited from using public roads. Moreover, no petrol pump will be allowed to store or sell fuel that does not comply with OGRA standards. The directive takes immediate effect across Punjab, and inspections at fuel stations are set to begin without delay, according to the DG Environment. 'Strict action will be taken against all retailers and suppliers found dealing in substandard fuel,' Dr Imran warned, adding that enforcement teams will ensure full compliance with the new policy. Copyright Business Recorder, 2025
Express Tribune
7 hours ago
- Express Tribune
Centre bypasses Punjab in DAO postings
The federal government has unilaterally appointed junior federal officers as Divisional Accounts Officers (DAOs) in all 43 districts of Punjab for the disbursement of public funds for the Public Works Department, bypassing constitutional and legal protocols and irking the Punjab Finance Department. These appointments have effectively stripped Punjab's District Accounts Officers (DAOs) of their constitutional authority over the disbursement of public funds, particularly for the Public Works Department. The move has sparked strong discontent within Punjab's Finance Department, which has raised the issue at a higher administrative level. In each district, two to three DAOs have been appointed, and they have already authorised payments exceeding Rs1 billion soon after assuming their roles. Members of the ruling PML-N have formally opposed this decision. MPA Ilyas Chinioti has submitted a motion of adjournment in the Punjab Assembly, arguing that the move violates the spirit of the 18th Constitutional Amendment, which grants provinces administrative autonomy. The motion demands that the federal government immediately withdraw its decision. The newly appointed federal officers are reportedly in grade 16 and 17, whereas Punjab's DAOs hold the more senior grade 18 posts. The reallocation of financial control to federal officers is seen as a direct infringement on provincial jurisdiction.
Express Tribune
7 hours ago
- Express Tribune
OMCs failing to keep 20-day stock to face penalties
The Oil and Gas Regulatory Authority (Ogra) has decided to impose penalties and in some cases suspend licences of oil marketing companies (OMCs) over failure to maintain 20-day oil stocks and lift the required petroleum products from refineries. The refineries will also face Ogra's action if they produce less-than-committed volumes for three consecutive months. In a letter to the leading OMCs, Ogra said it has observed that numerous OMCs were not adhering to their commitments made during the product review meeting (PRM) regarding the lifting of stocks from local refineries. "This failure to comply with the PRM directives is not only adversely impacting Ogra's oil supply chain management but is also damaging energy security and causing substantial revenue losses due to imports, which is tantamount to violation of the authority's directions," the regulator said, adding that after careful consideration and thorough deliberation, it made the decision that the OMCs which fail to lift local products vis-a-vis their commitment/ allocation in the PRM from refineries, fail to maintain 20 days of stock and the refineries which produce less-than-committed products for three consecutive months, would be placed before the authority for consideration of suspension of their marketing licence. The regulatory authority, during its meeting held on May 29, 2025, reviewed serious contraventions related to stock maintenance and product procurement. After deliberation, it approved immediate imposition of penalties by the department concerned under Rule 69 of the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016. As per Rule 37, the OMCs that failed to maintain the mandatory 20-day stock cover in March 2025 shall be penalised based on the shortfall in the average stock days. The OMCs which maintained less than five days of stocks will face a penalty of Rs10 million, for five or less than 10 days of stocks, the penalty will be Rs7.5 million, for 10 or less than 15 days of stocks, the penalty will be Rs5 million and for 15 or less than 20 days of stocks, the penalty will be Rs1 million. The regulator will also slap penalties on the OMCs that lifted insufficient products from the refineries. It will impose a penalty on the refineries that failed to supply allocated products to the OMCs and even those refineries will face action that produced less than the quantity committed in the PRM during March 2025. The OMCs which had more than 10% and less than 25% shortfall in lifting petroleum products from the refineries will face a Rs1 million penalty, in case of more than 25% and less than 50% shortfall, the penalty will be Rs5 million, in case of more than 50% shortfall, the penalty will be Rs7.5 million and those which had a shortfall of more than 75% in supplies from the refineries will face a Rs10 million penalty. For April 2025, the regulator directed the department concerned to issue show-cause notices to the relevant OMCs and refineries by May 30, 2025. A response period of seven working days from the date of issuance was granted. The authority further advised that show-cause notices for May 2025 be issued by June 20, 2025. Future enforcement measures Ogra has decided that any OMC failing to lift local products in relation to its PRM commitment or maintain a 20-day stock cover, and any refinery under-producing against its commitment for three consecutive months, will be subject to the possible suspension of their marketing licence. The enforcement department has been instructed to issue this directive to all the entities concerned. The authority has told the enforcement department (legal) to finalise the draft of "Petroleum Products Review Meeting Regulations, 2025" in consultation with the relevant departments. The draft will be submitted to the stakeholders for feedback, who will be allowed a period of seven working days to provide their comments.
