Business

ECC approves increasing dealers, OMCs margins on petrol, diesel

Published

8 months ago

Farwa

OMCs margin on MS, HSD enhanced by Rs1.87 per litre.
Margins to be determined by Ogra on systematic mechanism.
ECC approves supplementary grant of Rs40 billion for defence services.

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has allowed increasing the petroleum dealers’ and oil marketing companies’ (OMCs) margins from Sept 15 in four fortnightly installments, The News reported.

The decision to increase margins came after the Ministry of Energy (Petroleum Division) submitted a summary to that effect.

The ECC decided to enhance the petroleum dealers’ margins on MS and HSD by Rs1.64 per litre four installments of Rs0.41 per litre, effective from September 15.

Moreover, the OMCs margin on MS and HSD is to be enhanced by Rs1.87 per litre in four installments of Rs0.47 per litre, w.e.f September 15, 2023.

After a detailed discussion, the ECC decided that in order to ensure efficiency and timelines, these margins shall be determined by the Oil and Gas Regulatory Authority (Ogra) on the basis of a systematic mechanism to be developed by Ogra after considering PSO’s operating cost for OMC and dealers.

Meanwhile, the ECC meeting also rejected the Pakistan International Airlines’ (PIA) demand for the provision of Rs22.9 billion and deferment of Rs1.3 billion per month to the Federal Bureau of Revenue (FBR) as well as loans and markup amount till the finalisation of the restructuring plan.

The Ministry of Finance late Wednesday night issued a press release, which did not say anything about the PIA request to issue a carry-over amount of Rs22.9 billion for the last financial year 2022-23, which could not be released.

During the meeting, the Ministry of Aviation submitted a summary on “Financial support for PIACL & its Restructuring”.

The secretary of Aviation gave a detailed briefing to the chair about the financial burdens, liabilities of PIA, and the need for restructuring the organization.

The ECC discussed and reviewed the timelines and costs of the restructuring plan. After detailed discussion and deliberation, it was decided to constitute a separate committee for the assessment of the restructuring plan of PIA.

The ECC also rejected the request for deferment of the payments of Rs1.3 billion per month, which PIA pays to FBR against FED and Rs0.7 billion per month which PIA pays to CAA against embarking charges.

It was also decided that the Finance Division and State Bank of Pakistan would support PIA in tackling its financial challenges after a concrete plan for restructuring the airlines had been finalized and submitted to the satisfaction of the committee.

The ECC also approved a Technical Supplementary Grant of Rs40 billion against various approved projects of defence services and for subsidies and miscellaneous expenditures during FY2023-24. However, the amount will not be released at once, but on case to case basis only as it has already been budgeted for the current fiscal.

Business

Pakistan’s gold prices continue to decline.

Published

3 days ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

Business

Price of LPG “slashed” by Rs. 20 per kilogram

Published

3 days ago

Farwa

Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

Business

ADB delegation stops by FBR headquarters

Published

3 days ago

Farwa

Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.