ISLAMABAD: In a letter to the Oil and Gas Regulatory Authority (OGRA), Pakistan’s oil industry, represented by the Oil Companies Advisory Council (OCAC), has requested a first-ever hike in the price of High Speed Diesel (HSD). Who is Half of August.
JEE News reported that the industry sought an increase of Rs 10-12 per liter due to significant losses from high import costs and low domestic prices.
OCAC said diesel prices should be in line with the actual premium of $11.50 per barrel, given the latest cargo imported by Pakistan State Oil (PSO), the country’s largest fuel supplier.
“This will increase the price of HSD by Rs 10 to Rs 12 per litre,” OCAC said.
The industry warned that if the government follows its understanding of the decision of the Economic Coordination Committee from July 2020, which aims to ensure accurate recovery of inventory cost. It could maintain the current price of diesel, which could result in a loss of Rs 8 to Rs 9 billion for the sector.
OCAC also warned that the oil industry could lose Rs 24-25 billion if the outgoing government cuts the price of diesel to woo voters for the upcoming elections.
OCAC said refineries and oil marketing companies have already faced a loss of Rs 11 billion due to the forced drop in HSD price by Rs 7 per liter in the second half of July.
OCAC also informed that there has been no import of HSD during the second fortnight of July. To avoid further losses to the industry, OCAC urged OGRA to fix HSD prices for the first fortnight of August based on the actual premium applicable to the latest HSD cargo imported by PSO. That is $11.50 per barrel.
OCAC also asked the regulator to organize a meeting with industry members to arrive at an amicable solution in collaboration with Ogra’s finance and supply chain teams.
He argued that the meeting would give the industry an opportunity to fully present its view, ensuring that the price for the first fortnight of August is calculated taking into account the industry’s input.
