Business

Petrol, diesel likely to cross Rs300 mark for first time in country’s history

Published

8 months ago

Farwa

At present the inflation rate is at 28%, says energy ministry official.
Govt already under pressure due to power bills, says official.
LC confirmation charges embedded in price of petroleum products.

ISLAMABAD: Amid a recent increase in global oil rates along with depreciation in the value of the rupee against the US dollar — which has impacted the exchange rate impact by Rs12 — Oil and Gas Regulatory Authority (Ogra) is likely to recommend a hike in the petroleum products prices for the next fortnight, The News reported Tuesday.

It is likely that the price of petrol will go up by Rs12 per litre, while diesel will see a rise of Rs14.83 per litre from September 1, 2023.

“This would expose the masses to a further surge in inflation making the lives of the masses more miserable. At present the inflation rate is at 28%,” a senior official of the Energy Ministry told The News.

“However, the government which is already under tremendous pressure because of the countrywide protests over the inflated electricity bills, may reduce the increase or stop it,” the official added.

But doing so would put the caretaker government in a tight spot.

“If the government does that it would be considered that the caretaker government has defaulted on the IMF terms and conditions for its $3 billion standby agreement (SBA) loan under which the government is bound to pass fluctuation in prices of the POL products.

The dollar’s value has reached Rs301.75 in the interbank while it is selling at around Rs319 in the open market,” the official said.

As per the data, over the month of August, petrol prices have already increased by Rs37.50 while diesel has gone up by Rs40 per litre.

“However, the authorities last time worked out the POL prices at the value of the dollar at Rs287 and now they have decided to calculate the prices of POL products from September 1, 2023, at Rs299.

“The big impact of the exchange rate of Rs12 will be reflected in the hike in POL prices.

“The LC confirmation charges that have increased by 10% are also embedded in the price of PSO petroleum products,” the Energy Ministry official told The News.

“The existing price of Mogas stands at Rs290.45 per litre which may go up by Rs12 per litre to Rs Rs302.45 per litre. Likewise, the HSD price which stands at Rs293.40 per litre is also likely to increase by Rs14.83 per litre to Rs308.23 per litre.”

Diesel price is highly inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the cost of vegetables and other eatables.

On the other hand, petrol is also mostly used in private transport, small vehicles, rickshaws and two-wheelers and directly affects the budget of middle and lower-middle-class citizens.

Business

Pakistan’s gold prices continue to decline.

Published

1 hour 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

2 hours 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

2 hours 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.