ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has validated Pakistan State Oil’s (PSO) claim for an exchange rate adjustment of Rs1.43 per litre on high-speed diesel (HSD) and 32 paisa per litre on petrol. This adjustment will be incorporated in the petroleum price review for May 16-31.
During the first half of May, PSO’s exchange rate adjustment was negative 13 paisa per litre for both petrol and HSD. For the second half of May, PSO claimed an increase of Rs1.43 per litre on HSD and 32 paisa per litre on petrol, resulting in differences of Rs1.55 per litre on HSD and 45 paisa per litre on petrol.
The current pricing formula benchmarks PSO’s exchange rate. In the May 16 price build, the cost of PSO supply (average of Platts with incidentals and duty) decreased by Rs15.77 per litre on petrol and Rs9.53 per litre on HSD compared to the May 1-15 review period. Consequently, the ex-refinery price of petrol dropped by 15.32 paisa per litre, and HSD decreased by Rs7.97 per litre.
Furthermore, the Import Fuel Equalization Margin (IFEM) on HSD increased by two paisa per litre, and the extra margin rose by seven paisa per litre. Conversely, the IFEM margin on petrol decreased by seven paisa per litre.
The Oil Companies Advisory Council (OCAC) has repeatedly urged the Secretary of Petroleum and the OGRA chairman to compensate for exchange losses based on actual losses rather than the existing formula tied to PSO’s exchange losses and gains.
Story by Wasim Iqbal
