Federal Government, in pursuance of ECC decision of October 06, 2010 : AsiaNet-Pakistan

Federal Government, in pursuance of ECC decision of October 06, 2010

[ 0 ] January 31, 2012 | General Business News, Government Institutions | Share:

Islamabad: Federal Government, in pursuance of ECC decision of October 06, 2010, has deregulated the ex refinery/ex-depot prices of Motor Spirit, HOBC, LDO and Jet fuels (JP-1, JP-4 & JP-8)  w.e.f June 01, 2011. Per the ECC decision, refineries/Oil Marketing Companies (OMCs) will fix / announce ex-refinery / ex depot prices of above mentioned POL products.

The  Oil  and  Gas  Regulatory  Authority  (OGRA)  will,  however,  continue  to  compute  /notify  ex refinery  prices  of  HSD  and  Kerosene  including  ex-depot  prices  of  Kerosene  Oil  and  E-10  Gasoline on monthly basis, on Federal Government given formula & Petroleum Levy.

The ex-depot prices of Kerosene Oil and E-10 Gasoline, effective February 01, 2012 will be as follows:-

 

Product Existing Price Price w.e.f Difference %age
February inc/(dec)
01, 2012
Kerosene Oil 89.24 92.02 2.78 3.1%
E-10 Gasoline 87.05 92.41 5.36 6.2%

 

The  maximum  ex-depot  prices  for  various  POL  products,  computed  by  PSO,  per  Federal  Government  approved  formula,  effective  February  01,  2012,  are  reproduced  below  for information.

Revised
Product Existing Price Price w.e.f Difference %age
February inc/(dec)
01, 2012
MS 89.54 94.91 5.37 6.0%
HOBC 111.91 118.20 6.29 5.6%
LDO 86.78 90.21 3.43 4.0%
HSD 98.82 103.46 4.64 4.7%

 

The  above  revision  has  been  approved  by  Federal  Government  owing  to  changes  in international POL prices and exchange rate which are tabulated below.

 

Base Product Unit Effect Jan Effect Feb Difference %age
C and F Comparison 01, 2012 01, 2012 inc/(dec)
Naphtha $ / MT 889.74 935.91 46.17 5.2%
HSFO $ / MT 681.01 723.46 42.45 6.2%
Kerosene Oil $ / BBL 123.52 126.11 2.59 2.1%
Gas Oil $ / BBL 123.92 127.56 3.64 2.9%
Gasoline 95 RON $ / BBL 112.66 122.29 9.63 8.5%
Exchange rate Rs 89.30 90.34 1.04 1.2%

 

Furthermore,  Federal  Government  has  also  increased  Petroleum  Levy  (PL),  in  case  of  HSD  from Rs. 5.18 to Rs. 6.50 per litre to mitigate its budgetary constraint.

OGRA  had,  however,  recommended  to  the  Federal  Government  that  POL  prices  be  kept unchanged by absorbing the said increase in Petroleum Levy, to provide relief to public at large.

OGRA had also highlighted that estimated receipts of the Federal Government from Petroleum  Levy  (PL)  and  Sales  Tax,  for  the  period  July-December  2011  amounted  to  Rs.  153.3 billion Which is Rs. 9.2 billion higher than July-December  2010  receipts  of  Rs.  144.1 billion.

In case POL prices were kept unchanged, the estimated decrease in government revenue would have been Rs. 3 billion only which is within the additional tax revenue of Rs. 9.2 billion, being earned by the Federal Government.

 

For more information, contact:
Oil and Gas Regulatory Authority (OGRA)
Plot #54, Fazal-e-Haq Road, Near PIA Building,
Blue Area, Islamabad, Pakistan
Email: registrar@ogra.org.pk
Tel: +9251 922 1707

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Category: General Business News, Government Institutions

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