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Tag: petrol prices

  • Pakistan sees increase in LPG prices following petrol price hike

    Pakistan sees increase in LPG prices following petrol price hike

    The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the price of Liquefied Petroleum Gas (LPG) in Pakistan, following the recent hike in petrol prices. As per the notification, the price of LPG has been increased by Rs10 per kilogramme, with the new price per kilogramme set at Rs229.

    Moreover, the price of domestic and commercial cylinders of LPG has also been raised. The price of a domestic cylinder has been increased by Rs120, whereas a commercial cylinder will now cost Rs450 more than the previous rate.

    In addition, the federal government recently increased the petrol price by Rs10 per litre for the next two weeks. During a televised speech, the finance minister explained that the hike was due to the rise in international petroleum prices and exchange rate fluctuations.

    As a result, the new petrol price has been fixed at Rs282 per litre, while the rates for high-speed diesel (HSD) and light diesel oil have remained unchanged at Rs293 per litre and Rs174.68 per litre, respectively.

    Furthermore, the government has also raised the price of kerosene oil by Rs5.78 per litre, pushing it up from Rs180.28 per litre to Rs186.07 per litre.

  • Govt expected to increase petrol price by up to Rs14 per litre for the next fortnight

    Govt expected to increase petrol price by up to Rs14 per litre for the next fortnight

    Petroleum prices are expected to jump by approximately Rs10-14 per litre for the upcoming two weeks. Credible industry sources suggest that the government may contemplate increasing the prices of petroleum products in response to the increasing oil prices in the global markets.

    If the government considers compensating for exchange rate losses, as opposed to the previous review where the authorities did not transfer the impact of rupee devaluation to the public, the hike in prices could increase to as much as Rs14 per litre.

    The ex-depot price of petrol in the country is currently Rs272 per litre, and according to the workings of the oil sector, it is expected to reach Rs286.77 per litre in the next review if the government passes on the impact of global oil prices and exchange rate losses. However, even if the government does not adjust for exchange losses, petrol prices are still likely to increase due to higher global oil prices. The anticipated increase in the price of petrol is based on the current rate of taxes, with the government levying an Rs50 per litre charge on petrol and zero general sales tax.

    The expected rise in petrol prices is based on the Rs5 per litre exchange loss adjustment of Pakistan State Oil (PSO), which the government did not include in the past to keep petrol prices low. The prices of petroleum products would have been higher following the massive depreciation of the rupee against the dollar in the last two and a half months when, under International Monetary Fund (IMF) conditions, the market-based exchange rate was allowed.

    On the other hand, the price of high-speed diesel (HSD) is expected to remain unchanged in the next review of prices, as the current ex-depot price of HSD is the same as the expected price for the next fortnightly period. The anticipated unchanged price of HSD is based on the Rs17.50 exchange loss adjustment of PSO, which was pending when the dollar price increased massively in the last few weeks. Sources suggest that if the government does not adjust for exchange rate losses, the diesel price may decrease by Rs15 per litre.

    The government raised the petroleum levy on HSD to Rs50 per litre under IMF conditions in the last review of prices and charged no GST on it. According to sources, while the oil sector’s workings reflect a rise in petrol prices and no change in HSD, it is up to the government to decide. In the current scenario, the government has no option but to increase the price of petrol, as its financial space is already squeezed. Additionally, the government is making desperate efforts to revive the IMF program to shore up forex reserves.

  • Punjab Transport Department increases non-AC bus fares by over 250%

    Punjab Transport Department increases non-AC bus fares by over 250%

    The Punjab Transport Department (PTD) has announced that it will increase the fares of non-AC buses in response to the rising prices of diesel and petrol.

    This decision will place an additional burden on the poor, as fares will increase by more than 250 per cent. The new fares for both inter and intra-city non-AC bus services will be implemented from April 25th.

    The fare for non-AC bus services operating between different cities will increase by 233 per cent to 267 per cent. Additionally, an increase of up to 267 per cent in the fares of non-AC buses and wagons has also been approved.

    Under the new policy, passengers travelling one to four km will see an increase from Rs14 to Rs47, a difference of Rs33.

    This fare hike will also make it more expensive for passengers to return to their cities from native towns, particularly after Eid-ul-Fitr.

  • Govt hikes petrol price by Rs5 to Rs272 per litre to match global market changes

    Govt hikes petrol price by Rs5 to Rs272 per litre to match global market changes

    As per a press release from the Finance Division, the government has decided to raise the price of petrol by Rs5 per litre to Rs272 per litre for the next two weeks, effective from March 16 (Thursday).

    The statement noted that the increase was due to the rise in Platts Singapore prices over the past two weeks and the depreciation of the Pak Rupee, resulting in a hike in petroleum, oil, and lubricant (POL) products in Pakistan.

    The notification further disclosed that the price of high-speed diesel has been increased by Rs13 per litre to Rs293 per litre, and kerosene has been raised by Rs2.56 per litre to Rs190.29 per litre by reducing government dues on them. However, the price of light diesel oil has been kept constant at Rs184.68 per litre by adjusting government dues.

    It’s worth mentioning that Finance Minister Ishaq Dar had previously announced a reduction in petrol prices by Rs5 per litre on February 28.

  • International petrol, diesel prices drop, but no relief for Pakistanis

    The government has decided not to reduce the prices of diesel and petrol for local consumers, despite a significant decrease in their international prices. This decision is intended to offset previous exchange losses and raise taxation.

    On February 28, 2023, the average fortnightly prices of petrol and diesel in the global market will be used for the next price revision. According to industry sources, the average price of diesel for the next fortnightly review has dropped by $7 per barrel, which equates to a reduction of Rs30 per litre for domestic diesel prices.

    The global average price of diesel has fallen to approximately $100 per barrel compared to $107 per barrel in the previous fortnight. Similarly, the average price of petrol has dropped to $90 per barrel for the next review of prices compared to $93 per barrel in the last fortnightly review, which translates into a reduction of Rs10 per litre for consumers in the local market.

    According to Geo, the appreciation of the Pakistani rupee against the dollar in the last two weeks has also contributed to the reduction in import prices of diesel and petrol. However, industry sources do not expect any significant reduction in the prices of diesel and petrol for domestic consumers.

    The government is expected to adjust the exchange losses, which were not passed on fully to the oil sector in the last several reviews. For example, an exchange loss adjustment of Rs88 per litre was due on diesel, but the government only transferred Rs12 per litre on this head, leaving the remaining amount to be adjusted. The same is true for petrol, with an exchange loss adjustment of Rs34 per litre due, but only Rs12 per litre being given to the oil industry.

    Under the conditions set by the International Monetary Fund (IMF), the government may increase the petroleum levy (PL) on diesel to Rs50 per litre, as it now has room to do so. Currently, the PL on diesel is Rs40 per litre.

    If the government does not impose GST, sources expect a cut of Rs10 per litre in diesel prices, which would otherwise deprive local consumers of the drop in diesel prices in the global market.

    However, official industry sources do not anticipate any reduction in the price of petrol for local consumers, which would otherwise have been down by Rs10, as per the trends of its price in the global market.

  • Weekly inflation increases more than 38% as prices of petrol and food items hit the roof

    Weekly inflation increases more than 38% as prices of petrol and food items hit the roof

    According to the latest data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) based inflation for the week ended February 16, 2023, registered an increase of 2.89 per cent. The rise in inflation can be attributed to an increase in the prices of both food and non-food items.

    Food Items that saw an increase in prices

    The following food items saw a significant increase in prices during the week ended February 16, 2023:

    • Cooking oil 5 litre (8.65 per cent)
    • Vegetable ghee 1kg (8.02 per cent)
    • Bananas (8.01 per cent)
    • Chicken (7.49 per cent)
    • Vegetable ghee 2.5 kgs (6.76 per cent)

    Non-food items that saw an increase in prices

    The following non-food items saw an increase in prices during the week ended February 16, 2023:

    • Petrol (8.82 per cent)
    • Diesel (6.49 per cent)
    • Cigarettes (6.18 per cent)

    Year-on-Year Trend

    The year-on-year trend depicts an increase of 38.42 per cent mainly due to an increase in the prices of the following items:

    • Onions (433.44 per cent)
    • Chicken (101.86 per cent)
    • Diesel (81.36 per cent)
    • Eggs (81.22 per cent)
    • Rice irri-6/9 (74.12 per cent)
    • Rice basmati broken (73.05 per cent)
    • Petrol (69.87 per cent)
    • Moong (67.98 per cent)
    • Bananas (67.68 per cent)
    • Tea Lipton (63.89 per cent)
    • Pulse gram (56.93 per cent)
    • Bread (55.36 per cent)
    • Maash (53.42 per cent)
    • LPG (52.68 per cent)
    • Cigarettes (50.02 per cent)

    On the other hand, the prices of tomatoes (65.30 per cent), electricity for q1 (7.50 per cent), and chillies powdered (7.42 per cent) saw a decrease during the same period.

    SPI for the week under review

    The SPI for the week under review in the above-mentioned group was recorded at 234.77 points against 228.17 points registered in the previous week. Out of 51 items, prices of 34 (66.67 per cent) items increased, 05 (9.80 per cent) items decreased and 12 (23.53 per cent) items remained stable.

    SPI for different consumption groups

    The SPI for the consumption group up to Rs17,732, Rs17,732-22,888, Rs22,889-29,517, Rs29,518-44,175 and above Rs44,175 consumption group increased by 2.45 per cent, 2.73 per cent, 2.79 per cent, 2.88 per cent, and 2.94 per cent, respectively.

    Items that recorded an increase in average prices

    The following items recorded an increase in their average prices during the week over previous:

    • Petrol super (8.82 per cent)
    • Cooking oil Dalda or other similar brand (sn), 5 litre tin each (8.65 per cent)
    • Vegetable ghee Dalda/Habib or other superior quality 1 kg pouch each (8.02 per cent)
    • Bananas (8.01 per cent)
    • Chicken (7.49 per cent)
    • Vegetable ghee Dalda/Habib 2.5 kg tin each (6.76 per cent)
    • Hi-speed diesel (6.49 per cent)
    • Cigarettes Capstan (6.18 per cent)
  • Khan lashes out at govt on fuel hike

    Khan lashes out at govt on fuel hike

    Pakistan Tehreek-e-Insaf (PTI) Chairman and former Prime Minister (PM) Imran Khan lashed out at the incumbent government for Sunday’s surprise hike in petroleum prices.

    In a tweet, he said, “Total mismanagement of our economy by a corrupt and incompetent imported govt has crushed masses and salaried class with the latest hike in petrol and diesel prices”.

    Moreover, he claimed that 35 per cent “unprecedented inflation” is expected with Rs 200 billion mini-budget.

    Earlier in the day, Finance Minister Ishaq Dar announced that the federal government has decided to hike the prices of petrol and diesel by Rs 35 per litre.

    The decision came days before International Monetary Fund’s (IMF) officials are scheduled to visit Pakistan to discuss the stalled ninth review of the country’s current funding programme.

  • Petrol price to remain unchanged at Rs214.80 per litre for next fortnight

    Petrol price to remain unchanged at Rs214.80 per litre for next fortnight

    Finance Minister Ishaq Dar announced on Saturday that the government will maintain the price of petroleum products for the next two weeks.

    In a video statement, he said that the Oil and Gas Regulatory Authority (OGRA) requested an increase in domestic rates of petroleum products because of the upward trend in oil prices. However, he said that the price revision was rejected by the government.

    The price of petrol will remain unchanged at Rs214.8 per litre while diesel will be sold at Rs227.80 per litre till mid-January 2023.

    Kerosene oil will be sold at Rs171.83 per litre while light diesel oil will be sold at Rs169 per litre.

    “Kerosene is used by the low-income segment for heating needs,” the finance minister said.

    Previously, the market anticipated that the cost of petroleum products would remain unchanged.

  • Business confidence in Pakistan drops to negative 4%

    Business confidence in Pakistan drops to negative 4%

    Major multinational companies with operations across a variety of sectors in Pakistan have lost faith in the country’s economy. In the previous six months, the Business Confidence Score (BCS) as a whole decreased by 21 percentage points to a negative 4 per cent.

    In the earlier survey, which was conducted in March–April 2022, the score (BCS) was positive 17 per cent. In general, more than half of respondents (56 per cent vs. 19 per cent in the prior study) had a “poor” opinion of the business environment in the previous six months.

     “Going forward, only a net 2 per cent (versus 18 per cent in the previous survey) were ‘positive’ for the next six months and 35 per cent of respondents cited no plans to invest,” according to the “Business Confidence Index Survey Wave 22” of the Overseas Investors Chamber of Commerce and Industry (OICCI), which was held from September to November 2022.

    According to Express Tribune, political unrest, currency depreciation, and rising fuel prices were the top three factors contributing to the recent drop in business confidence. The other two top-five factors contributing to the recent drop in company confidence were the current energy crisis (high power costs) and inadequate commercial and trade policies.

    The services industry experienced a confidence decline of 24 per cent, followed by the retail and wholesale trade sectors (22 per cent), and the industrial sector (20 per cent). 25 per cent of respondents were from the retail and wholesale trade, 33 per cent from the services industry, and 42 per cent from the manufacturing sector.

    Commenting on the survey results, OICCI President, Ghias Khan said in a statement that “The substantial decline in the overall business confidence to negative 4 per cent is regrettable but not surprising considering the highly challenging political and economic situation witnessed during the past six months.”

    “The record level of rains during August leading to severe flooding in Sindh and other parts of the country further restricted business activities,” he added.

    “Foreign investors’ feedback could have been more positive but for serious concerns on a few critical issues like the undue delay in revising the pharma pricing and the extreme delays in overseas (outward) remittances for goods, services and dividends. Such actions are seriously counter-productive when trying to attract FDI (foreign direct investment) into the country,” Khan expounded.

    The main factors affecting business confidence in the country are anticipated to remain political unrest, rising fuel prices, and rupee depreciation.

    OICCI Vice President, Amir Paracha noted that “These are challenging times. Authorities are doing all they can to navigate the situation, including controlling inflation, managing the economy with restricted availability of foreign exchange and other resource constraints.”

    “The key stakeholders, especially foreign investors, will continue to support the authorities in taking long-term policy measures to streamline the economic fundamentals, including fair taxation for all, and facilitate business and investment into the country,” he added.

    According to the most recent survey results, the confidence index for business expansion (extra investment) plans over the next six months has decreased to 18 per cent from 34 per cent in the previous survey/W21.

    Similarly, capital investment (new) plans for the following six months fell sharply to 2 per cent (from 21 per cent in the previous wave).

    Compared to Wave 21, just 7 per cent of respondents in Wave 22 reported an increase in overall employment. A drop in overall employment over the previous six months was mentioned by almost 11 per cent of respondents.

    According to the trade body, “OICCI is the collective voice of major foreign investors. Over 200 members, from 31 different countries, have a presence in 14 sectors of the domestic economy and contribute over one-third of Pakistan’s total tax revenue.”

    In the meantime, on Wednesday, the interbank market saw the rupee fall 0.02 per cent (or Rs0.05), falling to a two-month low of Rs224.16 against the US dollar.

  • Top driving techniques for reducing fuel consumption

    Top driving techniques for reducing fuel consumption

    The price of petrol in Pakistan is unforgivably high and motorists have no recourse since fuel is the basic and continuous expense for gasoline-powered vehicles. Still, the vast majority of auto owners want to lower their monthly fuel costs.

    Fuel economy may not be a huge concern if an individual rarely drives a car for short trips, but regular commuting and lengthy excursions make it challenging to save fuel.

    Here are a few tried-and-true tips that are well-known to increase mileage:

    Go easy on the accelerator

    This entails just accelerating the car when necessary. Frequent braking and engine revving increase fuel consumption whereas keeping the speed of the vehicle steady reduces fuel consumption. This is why you get greater mileage on long routes or motorways.

    It is strongly advised to maintain a low RPM (preferably less than 2,500), and if your automobile has an eco-mode, it would be helpful to frequently use it. Depending on the vehicle, this mode is especially made to improve fuel efficiency and can reduce fuel consumption by up to 15%.

    Watch your speed

    If your car has a small engine (under 1300cc), it will use more gasoline when travelling at speeds of 100 km/h or greater. To provide higher output, the engine must push harder, which raises the RPM and petrol usage.

    Bigger engines may generate greater power at lower RPMs, hence they are often unaffected by higher speeds as they require less power and repeated flooring.

    Be aware that hybrid engines are less affected by this as they may employ electric motors to maintain a high power output while consuming little fuel.

    Drive smartly

    A motorist may handle traffic more effectively by keeping an eye on the surroundings, maintaining safe distances, and analysing the driving habits of other drivers. By doing this, the motorist may prepare for obstacles including roadblocks, red lights, road closures, and bumps.

    Additionally, it aids in intelligent acceleration and deceleration. Ultimately, smart driving is one of the best ways to increase safety and reduce fuel consumption.

    Avoid idling

    This is the most basic fuel-saving advice offered by automotive specialists. It is clear that idling for an extended period of time wastes fuel. In addition, warming up a car shouldn’t take more than 60 seconds.

    Use AC when needed

    When the air conditioner (AC) is on, cars use more petrol. More fuel is saved by just using the AC when necessary.

    Still, driving with your windows down in the summer only to save on fuel is not advised, especially on highways. The automobile experiences higher drag when the windows are rolled down, especially at high speeds. As a result, the automobile encounters higher air resistance and requires more engine power to maintain the same speed.

    This is why while driving at faster speeds, such as on a highway, the driver would be wise to put on the AC rather than rolling down the windows.

    Remove excess weight

    Many automobile owners ignore this underrated advice. If your trunk is empty, it might not make much of a difference, but if you have heavy items within your car, this could be the cause of your excessive fuel usage.

    The engine is put under more stress as the automobile gets heavier because it requires more power to move ahead, which increases fuel consumption.

    Perform regular maintenance

    Every automobile owner’s primary priority should be maintenance. Regularly having your automobile serviced is crucial since there may be many underlying problems and components under the hood that you are unable to inspect or maintain.