logo
#

Latest news with #IFEM

PSO exchange rate adjustment led to HSD price hike
PSO exchange rate adjustment led to HSD price hike

Business Recorder

time7 days ago

  • Business
  • Business Recorder

PSO exchange rate adjustment led to HSD price hike

ISLAMABAD: High-speed diesel (HSD) prices have risen by Rs11.37 per litre for July 16-31, 2025 fortnight. This increase is largely attributed to an exchange rate adjustment granted to Pakistan State Oil (PSO) while petroleum levy (PL) and climate support levy (CSL) have been kept unchanged. According to the documents, PSO exchange rate adjustment accounts for approximately Rs6.90 per litre of this hike, which constitutes about 60 percent of the total increase. Fuel prices likely to increase Other factors which attributed to price hike are the Inland Freight Equalization Margin (IFEM) on HSD which has also jumped to Rs6.04 per litre, a significant increase from Rs2.09 per litre in the previous fortnight. The ex-refinery price of HSD has climbed by Rs7.5 per litre, moving from Rs177.24 to Rs184.79 per litre. For petrol, several adjustments have led to price increases. Pakistan State Oil (PSO) exchange rate is set at Rs1.22 per litre, while the average Platts with incidentals and duty has increased by Rs2.21 to Rs167.51. The Inland Freight Equalization Margin on petrol is now Rs8.89, a rise of Rs1.93 per litre. The ex-refinery rate for petrol has increased by Rs3.43 per litre, moving from Rs165.30 to Rs168.73 per litre. Carbon levy on both petroleum products (petrol/HSD) is unchanged at Rs2.50 per litre. Petroleum levy on petrol is kept unchanged at Rs75.52 per litre and HSD Rs74.51 per litre. Premium on petrol has been fixed at 9.608 per bbl and $3.250 per bbl on HSD. According to a notification issued by the Finance Division late Tuesday night, petrol price has been raised by Rs5.36 per litre, while diesel has been increased by Rs11.37 per litre. Copyright Business Recorder, 2025

Petrol price up by Rs5.36, HSD's by Rs11.37
Petrol price up by Rs5.36, HSD's by Rs11.37

Business Recorder

time16-07-2025

  • Business
  • Business Recorder

Petrol price up by Rs5.36, HSD's by Rs11.37

ISLAMABAD: The federal government announced a significant hike in petroleum product prices on Tuesday, effective for the fortnight beginning July 16, 2025. This increase will see consumers paying considerably more at the pump. In a statement, Finance Division announced that petrol is set to rise by Rs 5.36 per litre, bringing the new ex-depot price to Rs 272.15 per litre, up from Rs 266.79. High-Speed Diesel (HSD) will see an even steeper increase of Rs 11.37 per litre, raising its price from Rs 272.98 to Rs 284.35 per litre. This follows a previous price adjustment where petrol increased by Rs 8.36 per litre and HSD by Rs 10.39 per litre, primarily attributed to fluctuations in international crude oil prices. Interestingly, the Inland Freight Equalization Margin (IFEM) has been adjusted upward. For petrol, it's now fixed at Rs 8.89 per litre (up from Rs 6.96), and for HSD, it has also been up to Rs 6.04 per litre (from Rs 2.09). The government also kept petroleum levy unchanged on petrol at Rs 75.52 per litre and Rs 74.51 per litre on HSD. Copyright Business Recorder, 2025

Petrol price increased, diesel's unchanged
Petrol price increased, diesel's unchanged

Business Recorder

time31-05-2025

  • Business
  • Business Recorder

Petrol price increased, diesel's unchanged

ISLAMABAD: The price of petrol has been increased by Rs 1.00 per litre to Rs 253.63, effective from June 1, 2025, as announced by the Finance Division on Saturday. However, the rate for high-speed diesel (HSD) will remain stable at Rs 254.64 per litre for the next two weeks. According to a late-night statement from the Finance Division, this adjustment follows the advice of the Oil and Gas Regulatory Authority (OGRA) and relevant government bodies. While the ex-refinery price of petrol is increased from Rs 151.80 to Rs 154.55 per litre, the government mitigated the full impact on consumers by significantly reducing the Inland Freight Equalization Margin (IFEM) from Rs 6.30 to Rs 4.55 per litre. The petroleum levy (PL) on both petrol (Rs 78.02 per litre) and HSD (Rs 77 per litre) remains unchanged. Additionally, the price of kerosene oil has seen a slight increase from Rs 250.14 to Rs 251.13 per litre. Copyright Business Recorder, 2025

Hike in prices of petrol, diesel likely
Hike in prices of petrol, diesel likely

Business Recorder

time15-05-2025

  • Business
  • Business Recorder

Hike in prices of petrol, diesel likely

ISLAMABAD: The government is expected to approve an increase of over Rs 4 per litre in the price of petrol (MS) and diesel, aiming to generate Rs 35 billion. The funds will support oil refineries, address sales tax challenges, and raise the profit margins of Oil Marketing Companies (OMCs). According to official documents, petroleum products— including petrol, diesel, kerosene, and light diesel oil (LDO) —have been classified as 'exempt' under the Finance Act 2024–25. As a result, input sales tax has become a cost for refineries and OMCs, totalling an estimated Rs 35 billion for the fiscal year, which cannot be recovered through product prices due to government regulations enforced by the Oil and Gas Regulatory Authority (OGRA). A draft proposal to levy a 3–5% sales tax on petrol and diesel was developed in consultation with the oil industry, the Ministry of Finance, and the Federal Board of Revenue (FBR). However, it was shelved due to the absence of an agreement with the International Monetary Fund (IMF) on allowing reduced GST rates for these products. Govt cuts petrol, diesel prices by Rs2 per litre for next fortnight Sources noted that applying the standard 18% GST would result in a price hike of approximately Rs 45 per litre— an increase considered politically and economically unfeasible. Any adjustment to the sales tax rate would require IMF approval and endorsement from Parliament. In parallel, OMCs and petroleum dealers have sought increases in their per-litre margins on petrol and diesel. To support the sustainability of the oil supply chain, OGRA has recommended raising the margins by Rs 1.13 for OMCs and Rs 1.40 for dealers. OGRA's recommendations have been reviewed, and certain amendments have been suggested in the summary. To partially address the financial challenges faced by refineries, OMCs, and dealers, the following proposals have been submitted for ECC's consideration: (i) since the petroleum products (Mogas, Diesel, Kerosene and LDO) are exempted from sales tax during current financial year, the refineries and OMCs' unadjusted sales tax during July 2024- June 2025 on these products may be compensated through Inter Freight Equalisation Margin (IFEM) estimated Rs.34 billion. The amount may be recovered in 12 months and recovery of this item will cease from the 13th month automatically; (ii) for FY 2025-26, 3-5% sales tax on above mentioned products may be imposed through Finance Act; however, in case the products remain exempted from sales tax in the FY 2025-25, the unadjusted sales tax may continue to be compensated through IFEM as a fallback option to keep the oil supply chain sustainable; (iii) the margins of OMCs and Petroleum Dealers may be enhanced to keep their business sustainable; and (iv) OGRA will develop a mechanism for adjustment of GST claims for above period and effective utilisation of digitisation cost along-with implementation timelines within one month of approval. Full cost of the digitisation will be borne by OMCs throughout the oil supply chain including outlets. The indicative impact on prices of MS and SHD will be as follows: (i) Refinery & OMCs 'unadjusted Sales Tax Rs. 28 billion for July-April, 2024 -25 and Rs 6 billion for May-June, 2025, impact Rs 1.87 per litre for 12 months; (ii) OMCs Margins (including-digitalization cost) Rs 1.13 per litre; and (iii) Petroleum Dealers Margin, Rs 1.12 per litre. The total impact will be Rs 4.12 per litre. The Government is likely to increase Attock Refinery Limited's (ARL's) freight charges by 30 per cent to Rs 1,490/ per barrel from Rs 1,143.95 per barrel for transportation of condensate as the key oil transporting companies have declined to accept the existing rate. Copyright Business Recorder, 2025

Petrol, HSD prices slashed
Petrol, HSD prices slashed

Business Recorder

time01-05-2025

  • Business
  • Business Recorder

Petrol, HSD prices slashed

ISLAMABAD: Federal government has decided on Wednesday to reduce the ex-depot rates of petrol and high speed diesel (HSD) by Rs 2 per litre each for fortnight starting from May 1, 2025. In a notification, Finance Division states, 'The government has decided to revise the prices of petroleum products for the forthcoming fortnight, based on the recommendations of OGRA & the relevant ministries'. The new price of petrol has come down from Rs 254.63 to Rs 252.63 per litre and HSD rate has also revised down ward from Rs 258.64 to Rs 256.64 per litre. The decline in crude oil prices has marginally translated into lower costs for petroleum products in Pakistan. However, the government's recent decision to abolish the Fifth Schedule—previously a mechanism that limited the petroleum levy to a maximum of Rs 70 per liter has raised questions about whether the full benefits of lower crude prices will be passed on to consumers. The government is charging Rs 78.02 per litre PL on petrol and Rs 77.01 per litre on HSD. The IFEM rate has revised downward from Rs 6.89 to Rs 6.30 per litre but OMC's margin has kept unchanged at Rs 7.87 per litre and dealer margin at Rs 8.64 per litre. Kerosene Oil price has raised from Rs 250.14 to Rs 252.13 per litre with effect from May 1, 2025. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store