Petroleum prices are expected to adjust marginally in the coming fortnight, influenced by a modest rise in global Brent crude prices, as reported by the oil industry on Thursday.
Petroleum Prices As Per Govt
The government, as per its bi-monthly schedule, is scheduled to announce the new rates on December 31, which will be effective from January 1, 2024, and will remain in effect until January 15. per liter while the prices of High-Speed Diesel (HSD) and Light Diesel Oil (LDO) may increase by Rs 2 per liter.
These projections of oil marketing companies (OMCs) are based on a scenario with zero adjustments in exchange rates, existing Petroleum Levy (PL) rates, and General Sales Tax (GST) rates. The government currently levies PL Rs 60 per liter with zero GST on petrol and HSD.
Globally, Brent costs have changed somewhere in the range of $77.95 and $81.07 per barrel since December 16, 2023. In the last review, the government applied an exchange rate of Rs 284.28 to one US dollar.
Meanwhile, fears of potential drone and missile attacks by the Houthis have forced crude oil shipping companies to reroute some tankers from the Red Sea. This strategic adjustment is expected to put pressure on oil prices, causing travel delays and additional costs.
Pakistan Bureau of Statistics (PBS) data shows that imports of refined products declined by 29 percent to $499 million in November 2023 from $708 million in the previous year. In contrast, crude oil imports rose 4 percent to $566 million from $546 million in the same month last year.
The Oil Companies Advisory Council (OCAC) noted a significant 16 percent decline in sales of petroleum products in the first five months (July to November) of FY 2023, due to higher petroleum prices compared to the same period last year.
Meanwhile, crude oil shipping companies have stopped shipping some tankers through the Red Sea to avoid the threat of drone and missile attacks by the Houthis. Experts said rerouting ships would cause travel delays and additional costs, putting pressure on oil prices.
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Government’s Move to Keep Petroleum Prices Unchanged.