March 1, 2024
  • United States: 05:21 PM
  • Canada: 05:21 PM
  • United Arab Emriates: 02:21 AM
Mar 1, 2024
United States: 05:21 PM|
Canada: 05:21 PM|
United Arab Emriates: 02:21 AM

PSO’s Offset Strategy: Fuel Price Surge against PKR Devaluation

The federal government granted Pakistan State Oil (PSO) an exchange rate adjustment of Rs. 9.92 per liter on petrol and Rs. 13.12 per liter on high-speed diesel (HSD) while keeping the petroleum development levy unchanged at last month’s rates.

According to the Oil and Gas Regulatory Authority (OGRA) ex-refinery sale price data, petroleum prices were closed at US dollar/Rs. 236.40 on January 27 and Rs. 271.08 on February 15. The oil marketing companies (OMCs) estimated that the exchange rate would cause the price of petrol to rise by Rs. 32.07 per liter and the price of HSD to rise by Rs. 32.84 per liter, reported Business Recorder.

By revising the rate of inland freight equalization margin (IFEM)  on both petrol and diesel, the government has apparently absorbed the exchange rate adjustment.

Effective February 16th, the average Platts with incidentals and duty on petrol increased by Rs. 18.19 to Rs. 195.66. The ex-refinery price of petrol has increased by Rs. 28.11 per liter to Rs. 205.58 on February 16, 2023, from Rs. 177.47 on January 29, 2023.

More data reveals the PDL on petrol remained at Rs. 50 per liter, while IFEM fell by Rs. 5.91 per liter to Rs. 3.42 per liter, down from Rs. 9.33 per liter.

The dealer’s margin stands at Rs. 7 per liter, while the distance margin is Rs. 6.00 per liter. Petrol ex-depot increased by Rs. 22.20 to Rs. 272.00 per liter on February 16 from Rs. 249.80 per liter on January 29, 2023.

High-Speed Diesel

The average Platts with incidentals and duty on diesel (HSD) rose by Rs. 13.09 to Rs. 221.30 per liter on February 16 from Rs. 208.21 on January 29. In the case of HSD, the PSO exchange adjustment was reduced by three paisas (0.03) per liter to Rs. 13.12 on February 16 from Rs. 13.15 on January 29. The ex-refinery price of HSD was Rs. 234.42, representing an Rs13.05 increase per liter.

The IFEM dropped from Rs. 9.33 per liter to Rs. 6.76 per liter on February 16. The dealer margin on HSD is Rs. 7 per liter, while the distance margin is Rs. 5.34 per liter. The ex-depot price has risen by Rs. 17.20 per liter from Rs. 262.80 to Rs. 280.

The PDL on high-speed diesel remains unchanged at Rs. 40 per liter as of January 29.

Source: PROPAKISTANI

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