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Petrol price may increase by Rs20 from Feb 16

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2 years ago

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  • Next petrol price review due on Feb 15.
  • PDL may also be increased on diesel.
  • Sharp increase in POL prices is expected.

KARACHI: The prices of petrol may witness a surge of Rs20 per litre in the next two weeks’ review — which is to be held on February 15, 2023, The News reported on Tuesday.

This recent uptick in petrol price was based on the calculations of the international price of petrol i.e. free on board (FOB) basis, oil industry sources told the publication. 

The government had carried out a massive increase of Rs35 per litre in the last fortnightly review of fuel prices. Currently, the government is charging Rs50 per litre petroleum levy (PL) whereas general sales tax (GST) has not been imposed yet.

The price of petrol may further increase provided the foreign exchange rate was adjusted in the next review, the sources mentioned.

They further said that the exchange rate was on the higher side, which would deprive the local consumers of any benefit or reduction in the prices of petroleum products. 

The prices of petrol in the international market have decreased, but the steep depreciation of the rupee against the dollar has eroded the gains to detriment of domestic consumers.

The sources also added that the petrol price might go up even further if the government adjusted Rs20 per litre on account of the exchange rate as well, which would cumulatively take the price by up to Rs40 per litre. 

On the other hand, diesel price was not reflecting any increase on FOB sans exchange rate adjustment. The sources said that if the exchange rate was adjusted, diesel prices could go up in the next review.

The government had adjusted Rs14 per litre on diesel on account of the exchange rate; however, the steep appreciation of the dollar has eaten up the exchange rate adjustment of the last review.

They noted that diesel prices went down by five to six dollars per barrel in the global market, but rupee depreciation would not allow the government to pass on this reduction in global prices to local consumers. 

The last increase in prices of petroleum products was made in the review on January 29, 2021, by the federal government. After the review, petrol price was tagged at Rs249.80 per litre; high-speed diesel Rs262.80 per litre; kerosene oil Rs189.83 per litre; and light-speed diesel Rs187 per litre.

On January 29, 2023, the government increased the prices of petrol and high-speed diesel by Rs35 per litre each and the rates of kerosene oil and light diesel oil were increased by Rs18 per litre each.

Pakistan is currently facing a short supply of petrol, with its most populous province, Punjab bearing the brunt of the crisis. Major and smaller cities, towns and villages in Punjab do not have the fuel, which was also being blamed on petroleum dealers.

Last week, sources had said that other than the low import of petrol by a majority of Oil Marketing Companies (OMCs), petroleum dealers were having a field day and were involved in the hoarding of petrol in view of the expected increase in prices by mid-February.

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Business

With the PSX at 115,000, investors profit while the sun is shining.

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5 hours ago

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Despite the numerous actions the government has taken in recent months, the nation’s economy is still growing.

The extraordinary rise in equities in recent years is evidence that the economic “turnaround” has given investors cause for optimism.

As market participants eagerly made investments, the KSE-100 index crossed the 115,000 level on Friday, the penultimate working day of the current week on the Pakistan Stock Exchange (PSX). The stocks gained strength on the 13th consecutive day, highlighting improvement in the country’s economy.

During early hours of trading, stocks climbed to 115,172 with a gain of 600 points.

The Pakistan Stock Exchange (PSX) reached its peak by surging above 114,000 points on Thursday. It has been over a month since the surge began.

The figure jumped by a substantial 2,500 points to 113,374 points during Thursday’s session. The KSE-100 index closed at 114,180, up 3,370 points, after surpassing 114,000 points later in the day.

On Wednesday, stocks closed at 111,810.

FLOW AND EBB

The market had a sharp bearish rise a few days ago, but it was short-lived as bullish momentum returned. The benchmark KSE-100 index gained more than 2,000 points and is currently sitting around 111,000. It was in opposition to the close of 108,896 points the day before.

CUT THE rating ON THE CARDS

The proverbial bulls have been galloping for the past month or so thanks to the financial infusion from the International Monetary Fund’s loan disbursement and more discussions on climate funding.

The impending policy rate cut meeting of the SBP is another factor contributing to the current market attitude. The Monetary Policy Committee of the Central Bank is scheduled to convene on Monday, December 16.

On November 30, the Pakistan Stock Exchange (PSX) achieved a historic milestone by reaching a record-breaking high of 100,000 points following an unheard-of run of gains.

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ADB Adjusts Pakistan’s Economic Growth Forecast to 3% for 2024-25, Indicating Positive Economic Trajectory

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1 day ago

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Pakistan’s economic growth is projected to be three percent in the fiscal year 2025, according to the Asian Development Bank’s revised prediction, which is an upward revision from the previous forecast.

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The PSX 100 index crosses 113,000 points, marking a historic milestone.

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1 day ago

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The historic 113,213-point milestone has been surpassed for the first time by the Pakistan Stock Exchange (PSX), setting a new record.

The stock market experienced a spectacular start to the trading session, rising 1,400 points in just 30 minutes. At an all-time high of 112,277 points, the KSE-100 Index jumped 1,467 points.

With the index rising 1,200 points in just 15 minutes after the market began, the PSX had already reached another milestone. At 112,041 points, the KSE-100 Index had risen 1,231 points.

In another example of record-breaking performance, the PSX saw a 1,000-point spike in just 10 minutes. The KSE-100 Index rose 1,100 points to 111,911 points, regaining the 111,000-point milestone and hitting its highest level ever.

The PSX’s exceptional performance establishes it as a crucial gauge of economic optimism by highlighting robust investor confidence and substantial market momentum.

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