Latest news with #Rs255.63
Express Tribune
29-03-2025
- Automotive
- Express Tribune
Petrol price reduced by marginal Re1
The government on Friday announced slashing the price of petrol by Re1 with effect from today (Saturday). The price of High Speed Diesel (HSD), however, remained unchanged. In Pakistan, fuel prices are reviewed and changed on a fortnightly basis, respectively on the first and fifteenth of every month. However, this time, the Finance Division issued a notification for a change in fuel prices three days before completion of the month. The price of petrol was Rs255.63 per litre which has now reduced to Rs254.63 per litre. The price of per litre HSD will stay at Rs258.64. The government on March 15 raised the petroleum levy by Rs10 per litre – a 17% hike – to Rs70 per litre, keeping petrol and diesel prices unchanged, while using the available additional fiscal space to reduce electricity prices by roughly Rs1.50 per unit. Despite the increase, the ex-depot petrol price remained at Rs255.63 per litre, while the HSD stayed at Rs258.64 per litre.
Express Tribune
28-03-2025
- Business
- Express Tribune
Govt announces petrol price cut by Rs1 per litre
Listen to article The federal government has announced a reduction in the price of petrol by Rs1 per litre, according to a notification issued by the Finance Division on Friday. The new prices, recommended by the Oil and Gas Regulatory Authority (OGRA), are based on fluctuations in international market rates. As per the notification, the revised prices for Motor Spirit (petrol) and High-Speed Diesel (HSD) will take effect from March 29, 2025. Following the decrease, the new price of petrol will be Rs254.63 per litre, down from the previous rate of Rs255.63. However, the price of High-Speed Diesel remains unchanged at Rs258.64 per litre. OGRA assessed global market trends and submitted its recommendations for adjusting local petroleum product prices to provide relief to consumers, the Finance Division said in the statement.
Express Tribune
25-03-2025
- Business
- Express Tribune
Govt measures help curb smuggling
Listen to article Pakistan has taken a host of strict measures to control smuggling of commodities including oil supplies from Iran that led to an increase of up to 340% in legal trade. Though the government has sprung into action to curb the smuggling of Iranian oil, the domestic oil industry claims the illegal trade has started rising again, sparking concerns among market players. In a recent meeting of the federal cabinet, the interior and narcotics secretary spoke about the anti-smuggling measures and operations undertaken over the last one year. He informed ministers and advisers that the government had cracked down hard on the inward and outward smuggling of commodities, including the essential items, such as wheat, sugar, urea, cigarettes, oil, gold, tyres and tea. Action had been taken through setting up 56 joint check posts, the digitisation of petrol pumps, introducing tracking systems for vehicles carrying Iranian oil and the completion of a sea barrier at Jiwani. The government has also formed a seafront task force under the Pakistan Maritime Security Agency and is establishing 35 digital enforcement stations. The secretary revealed that the overall increase in legal imports across all categories reached 340.8%, which indicated a significant rise in documented trade. Separately, in a letter written to Director Customs Intelligence of the Federal Board of Revenue (FBR) Abdul Basit Abbasi, the Oil Companies Advisory Council (OCAC) drew his attention to the rise in smuggling of Iranian oil. The industry lobby pointed out that they were encountering a decline in sales of petroleum products as well as the loss of revenue in the backdrop of resurgence of illegal trade. "We refer to our letter dated November 4, 2024, in which we acknowledged the efforts undertaken by the FBR to curb illicit trade, particularly concerning the illegal petrol pumps, unlicensed oil agencies and cross-border smuggling," the OCAC said, adding that those measures significantly contributed to restricting the illegal fuel trade, leading to a notable increase in nationwide fuel sales from September to December 2024 (compared to the same period of last year) and substantial revenue generation for the government. However, it expressed concern over the recent downturn in fuel sales in February 2025. Reliable sources indicate that the illicit trade has resurfaced as the smuggled high-speed diesel is being sold at an alarmingly low price of approximately Rs180 per litre compared to the current market price of Rs258.64 per litre. Additionally, the mixing of light aliphatic hydrocarbon and solvent with petrol goes on unchecked, with reports suggesting that adulterated motor spirit is being sold for Rs160 per litre, significantly lower than the regulated price of Rs255.63 per litre. This resurgence of illegal fuel sales not only disrupt legitimate businesses but also result in a substantial revenue loss of roughly Rs1.5 billion per day for the government. The OCAC pointed out that the adverse impact was reflected in the declining fuel sales, which included a 6% fall in high-speed diesel sales to 419,494 metric tons in February 2025 as compared to sales of 445,263 MT in February 2024. Similarly, preliminary data indicates that motor spirit sales will be 5% lower in March 2025 compared to the same month of last year. Additionally, planned sales, based on September-December 2024 trends, are down 13% for motor spirit and 16% for high-speed diesel in March 2025, despite the onset of agricultural planting season. "Given these developments, we request you to mitigate the resurgence of illicit fuel trade through the closure of illegal retail sites, with strict measures to prevent their re-emergence and stronger border controls, which can contribute 4,000-8,000 MT of fuel daily to the economy," the OCAC said. It also underscored the need for placing restrictions on the import of white spirit, which was commonly used as an adulterant in high-speed diesel.
Express Tribune
16-03-2025
- Business
- Express Tribune
Govt trades cheaper petrol for power relief
Prime Minister Shehbaz Sharif on Saturday raised the petroleum levy by Rs10 per litre – a 17% hike – to Rs70 per litre, keeping petrol and diesel prices unchanged, while using the available additional fiscal space to reduce electricity prices by roughly Rs1.50 per unit. Despite the increase, the ex-depot petrol price will remain at Rs255.63 per litre, while high-speed diesel will stay at Rs258.64 per litre, according to officials from the finance and energy ministries. The government opted not to pass on the reduction in global oil prices to consumers, which was due on March 16. The total reduction in electricity prices is expected to be more than Rs1.50 per unit, with the prime minister planning to announce the relief on March 23. On the summary of the finance ministry, the prime minister approved to increase the petroleum levy rates by Rs10 per litre to Rs70. The additional Rs10 per litre will be used to reduce the electricity prices by about Rs1.50 per unit. "We have decided to maintain petroleum prices at their current levels and transfer the full financial benefit to the public by reducing electricity prices," the prime minister said. The premier added that this measure is one of many aimed at achieving a meaningful reduction in electricity tariffs. "This step is among several others that will lead to a significant reduction in electricity prices." The residential consumers are forced to pay over Rs65 per unit electricity price which is the direct outcome of Rs18 per unit idle capacity payments, hefty cross subsidy being charged from users of over 300 monthly consumption and building the cost of inefficiency and theft in the power rates. The PM has tasked his power minister Sardar Awais Leghari to come up with a tangible proposal to reduce the prices in the range of Rs6 to Rs7 per unit. The trade-off between petrol and electricity prices is being done to address an issue of high electricity bills, which is hurting every household and the industry, said Federal Minister for Petroleum Ali Pervaiz Malik while talking to The Express Tribune. Ali noted that while petrol in Pakistan was among the cheapest in the region, electricity was the most expensive, which the prime minister is trying to rebalance. The Express Tribune reported on Saturday that the International Monetary Fund (IMF) had allowed Pakistan to increase petroleum levy to Rs70 per litre and use the funds to reduce power prices. The levy has been increased to absorb price reduction. The prime minister said that a comprehensive and effective strategy is being prepared under which an electricity package is being developed to reduce electricity prices and the details are being finalised. The government has estimated earning about Rs180 billion per annum from the additional levy, which it will use to reduce electricity prices by about Rs1.50 per unit. The government officials said that the total reduction in the electricity prices will be higher than this after availing the fiscal space on account of negative fuel price adjustment claims of the previous months. The government also tried to convince the IMF to lower the GST rate on electricity bills to reduce prices but the Fund did not agree. According to a comparison by the government, at US dollar parity, the petrol price in Pakistan is 91 cents compared to 1.15 dollars in India, 1.26 dollars in Sri Lanka and 1.04 dollars in Bangladesh. However, a key reason behind the higher price in dollar terms in neighbouring countries is that their currencies are stronger relative to a weaker rupee. Likewise, the diesel price in Pakistan in dollar terms is 92 cents while it is $1.03 in India, $1.12 in Sri Lanka and 86 cents in Bangladesh. Pakistan's per capita income is also lower than its regional peers, which limits its citizens' ability to pay high prices for fuel and electricity. Petrol is mainly used in private transport, small vehicles, rickshaws, and two-wheelers, and it directly affects the budget of the middle and lower middle classes. Most of the transport and agriculture sectors run on high-speed diesel. After the fresh increase, the total taxes on the petrol have increased to about Rs86 per litre. The government will now charge Rs70 per litre petroleum levy besides 10% excise duty at the import stage. The financial space created by changes in global oil prices and other measures will be used to provide significant relief to the public through reduced electricity costs, the prime minister stated. He reiterated his government's commitment to prioritising public relief since taking office. As per the decision of the government, the oil prices will remain the same up to the end of the current month. The per litre price of petrol will remain at Rs255.63, high-speed diesel Rs258.64, kerosene oil Rs168.13 and light diesel oil at Rs153.34. On the other hand, the work submitted to the petroleum division by the industry a few days back showed relief in the price of petroleum products up to Rs14.16 per litre in line with a reduction in global oil prices. The work by the industry showed that ex-depot prices of petrol could drop by Rs14.16 per litre and the same for diesel was projected to drop by Rs8.70 per litre. A cut of cut of Rs10.33 per litre was calculated in the price of kerosene oil while Light diesel oil could have to dropper by Rs. 7.12 per litre.
Express Tribune
15-03-2025
- Business
- Express Tribune
Govt keeps petrol, diesel prices unchanged till Eid
The government has decided to maintain the prices of all petroleum products at their current levels for the next fortnight, starting March 16, 2025, according to a notification issued by the Finance Division. The price of petrol will remain at Rs255.63 per litre, while high-speed diesel will be priced at Rs258.64 per litre. Additionally, kerosene will be available at Rs168.12 per litre, and light diesel will be priced at Rs153.34 per litre during the same period. These prices will come into effect on March 16, 2025. Earlier, reports suggested that the government might reduce the prices of petroleum products by up to Rs14.16 per litre, following a decrease in global oil prices and premiums, based on estimates from oil marketing companies (OMCs). However, Prime Minister Shehbaz Sharif opted to maintain the current prices, directing the full financial benefit to be transferred to the public through a reduction in electricity rates. In a statement from the Prime Minister's Office, Shehbaz Sharif confirmed that the government would keep the prices of petroleum products unchanged, preparing to provide significant relief to the public by reducing electricity rates. He added that the decision to maintain petroleum prices was part of a broader strategy to help consumers by making electricity more affordable. Prime Minister Sharif revealed that a comprehensive plan to lower electricity rates was in the final stages of preparation, with an announcement expected in the coming weeks. He explained that the financial space created by fluctuations in global oil prices, combined with other measures, would allow the government to offer substantial relief through lower electricity prices. The Premier reiterated his commitment to prioritizing public relief, stating that this initiative would not only reduce electricity prices but also have a positive effect on overall inflation, contributing to further price reductions.
