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Petrol, diesel prices likely to witness sharp increase in next review on Jan 31

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  • Petrol, HSD expected to go up by Rs7 per litre each on Jan 31, 2024.
  • Domestic prices slashed several times in last three months. 
  • Expected jump based on global prices of HSD, petrol and crude oil.

ISLAMABAD: Following back-to-back relief in fuel prices, the caretaker government is likely to increase the prices of petrol and high speed diesel (HSD) in the next fortnightly review on January 31, The News reported on Thursday.

The expected hike in fuel prices is due to a surge in international oil rates amid escalating tensions in the Middle East, industry officials said on Wednesday.

The government, which adjusts the prices of petroleum products every 15 days based on the recommendations of the Oil and Gas Regulatory Authority, is likely to raise the price of petrol and diesel by Rs7 per litre each on January 31, 2024, an official told The News.

The expected hike in the prices of petroleum products would come after domestic prices remained stable or witnessed a decrease since November 01, 2023.

“The situation is most likely to be different this time after petroleum prices saw some reduction in the last three months,” an oil sector official said as he pointed out that global prices of petroleum products went up in the last one week after a crisis in the Middle East, especially the Houthi attacks on ships in the Red Sea, triggering the strike from US and UK against them in Yemen.

They said that the expected jump in the domestic prices is based on the global prices of HSD, petrol and crude oil, which have fluctuated upward by four to five dollars in the last one week.

The international price of petrol jumped to $89 per barrel from $83 per barrel in one week whereas the price of HSD surged to $97-98 per barrel from $ 93 per barrel in a week.

The international price of crude oil increased to $80 per barrel from $76 per barrel.

Officials said that the $4 to $5 per barrel increase in the global prices has been translated to push the prices up in the market.

They said that the dollar in the local market is stable, otherwise the price fluctuation would have been even higher upwardly in the local market.

They added that some resistance came in the prices of these products at the international level and it is expected that in the next few days, the prices may remain at these levels.

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Pakistan’s lunar mission ‘ICUBE-Q’ reaches the moon orbit.

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Pakistan’s lunar mission (ICUBE-Q) entered orbit around the moon on Wednesday.

Pakistan’s historic lunar mission (ICUBE-Q) launched from Hainan, China, on Friday aboard China’s Chang’E6 spacecraft.

According to the IST, the satellite ICUBE-Q was planned and developed in partnership with China’s Shanghai University SJTU and Pakistan’s national space agency SUPARCO.

The ICUBE-Q orbiter is equipped with two optical cameras to image the lunar surface. ICUBE-Q has now been integrated into the Chang’e6 mission after successfully qualifying and testing it.

Chang’e6 is the sixth lunar exploration mission launched by China.

The launch event was streamed live on the IST website and social media platforms. Chang’6, China’s Lunar Mission, will land on the Moon’s far side to collect surface samples before returning to Earth for further research.

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The FIA and KE have launched 13 successful operations against power theft.

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In March 2024, operations were performed in collaboration with the FIA, targeting locations such as Marora Goth, Peer Abad, Ellahi Colony Metroville, Merchant Navy Housing Society, Johar Colony, Willayatabad, and Architects Society, among others. As a result of these collaborative efforts, six FIRs regarding power theft have been filed. Furthermore, four people were caught, with three being remanded to jail and one being released after paying the fines. To enforce governance and maintain accountability, a total fine of PKR 44.33 million was issued. Additionally, in partnership with FIA Balochistan, KE has conducted anti-theft operations in Hub, where teams from KE and FIA thoroughly investigated places including as markets, retail plazas, residential and commercial properties.

Regular actions against illicit power use are part of KE’s everyday activities to prevent line losses and protect the safety and security of the electrical infrastructure. Since the start of the fiscal year (FY 2023-24), over 24,000 kunda removal drives have been performed, resulting in the elimination of over 190,000 unlawful connections and the recovery of over 260,000 kgs of illegal kunda wires.
Ongoing raids involving law enforcement personnel and other agencies have resulted in the registration of around 994 FIRs against various individuals throughout Karachi. Since the launch of the nationwide power theft campaign in September 2023, more over 100,000 incidences of theft of 180 million units of electrical power have been identified in KE’s service zone.

In response to KE’s anti-theft initiatives, a KE spokesperson stated that “71% of KE’s feeder network is loadshed-free. However, 29% of the KE network remains difficult, with electricity theft and nonpayment of bills still key issues. Serious theft cases have been found in Baldia, Surjani, Korangi, Orangi, Liaqatabad, Landhi, and Lyari, among other places. Highlighting the repercussions of electricity theft, which may jeopardize the safety standards of the power network, the KE Spokesperson noted that PKR 117 million has been recovered.

Recognizing the challenges faced by current macroeconomic conditions, especially high inflation, KE is taking proactive steps to assist customers by establishing facilitation camps throughout the city. Since July 2023, approximately 240 recovery camps have been hosted around KE’s operational zone to help customers resolve billing concerns, including supporting payment plans with manageable installments.

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Budget 2024–25: The government intends to abolish tax exemptions.

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According to the specifics, the federal government plans to phase out existing tax breaks for the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) regions in the upcoming fiscal year.

The decision to eliminate tax breaks in the FATA/PATA region is estimated to produce Rs 100 billion in annual revenue for the national government.

According to sources close to the issue, the Federal Bureau of Revenue (FBR) has already created a preliminary proposal for the next fiscal year’s budget, and the FBR head has also informed the finance minister on it.

Currently, the federal government provides tax breaks of Rs 1,200 billion to various industries; however, the IMF has instructed Pakistan to phase out these tax breaks in the next budget.

Pakistan’s president, Asif Ali Zardari, passed the Tax Laws (Amendment) Bill 2024 last week in accordance with Article 75 of the constitution.

According to a President House News release, the bill proposes amending legislation governing taxes and duties.

The bill’s revisions include changes to sections 30DDD, 43, 45B, 46, and 47 of the Sales Tax Act of 1990.

Similarly, the amendment bill amended sections 29, 33, 34, and 38 of the Federal Excise Act 2005, as well as sections 122A, 124, 126A, 130, 131, 132, 133, and 134A of the Income Tax Ordinance 2001.

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