Islamabad - The government decision of maintaining the prices of Petroleum Products till June is becoming unsustainable as Oil Marketing Companies and Refineries have projected that the Price Differential Claims on Petrol and High Speed Diesel is likely to reach Rs17/litre and Rs21/litre, respectively during the next fortnightly starting March 16, to March 31.
The projection of the OMCs and Refineries is far higher than the estimates of petroleum division in whose view the impact of the increasing trend on oil pricing PDC is expected to be in the range of Rs10-15/litre in the coming fortnight (16-31 March, 2022). As per the estimates of the impact of PDC is roughly Rs12 billion per fortnight.
However, the increasing trend continued and the international oil prices are hovering between $120/bbl to 132/bbl which will result further jack up the PDC of OMCs and Refineries.
The oil industry projects up to 17 percent increase in ex-refinery prices of petroleum products, taking the projected burden of Price Differential Claims on Petrol and HSD to Rs17/litre and Rs21/litre, respectively during the upcoming fortnightly of March, official told The Nation.
As per the oil industry calculation, it has been projected that the ex-refinery price of petrol is likely to jump by Rs16.25/litre to Rs151.48/litre from the existing Rs135.23/ litre from upcoming fortnightly (March 16 to March 31), official data available with the scribe reveals.
Based on the hike in international oil prices it has been projected that the ex-refinery price of HSD is likely to go up by 16.82pc from Rs136.61/litre to Rs159.58/litre during upcoming fortnightly, the documents reveals.
As per the documents from March 4 to March 7, the price of Brent Crude Oil in international market gone up by 8.98 percent from $114.78/bbl to $125.09/bbl while Arab Light increased by 14.62 percent from $111.64/bbl to $127.96/bbl.
As per the calculations the Gasoline 10ppm increased by 16.98 percent in just three days from $134.39/bbl to $157/bbl, RON 92 by 14.83 percent from $120.81/bbl to $138.73/bbl and RON 95 by 14.37pc from $124.68/bbl to $142.60/bbl.
The increase of petrol and HSD prices will increase the payment of PDC to almost 25 percent higher than the government estimated Rs12 billion per fortnightly. Maintaining the prices of petroleum products is costing the government Rs52 billion on account of budget Petroleum Levy and GST for one fortnightly and billions of rupees on account of PDC.
The projection of the OMCs and Refineries is far higher than the estimates of petroleum division in whose view the impact of the increasing trend on oil pricing PDC is expected to be in the range of Rs10-15/litre in the coming fortnight (16-31 March, 2022). As per the estimates of the impact of PDC is roughly Rs12 billion per fortnight.
However, the increasing trend continued and the international oil prices are hovering between $120/bbl to 132/bbl which will result further jack up the PDC of OMCs and Refineries.
The oil industry projects up to 17 percent increase in ex-refinery prices of petroleum products, taking the projected burden of Price Differential Claims on Petrol and HSD to Rs17/litre and Rs21/litre, respectively during the upcoming fortnightly of March, official told The Nation.
As per the oil industry calculation, it has been projected that the ex-refinery price of petrol is likely to jump by Rs16.25/litre to Rs151.48/litre from the existing Rs135.23/ litre from upcoming fortnightly (March 16 to March 31), official data available with the scribe reveals.
Based on the hike in international oil prices it has been projected that the ex-refinery price of HSD is likely to go up by 16.82pc from Rs136.61/litre to Rs159.58/litre during upcoming fortnightly, the documents reveals.
As per the documents from March 4 to March 7, the price of Brent Crude Oil in international market gone up by 8.98 percent from $114.78/bbl to $125.09/bbl while Arab Light increased by 14.62 percent from $111.64/bbl to $127.96/bbl.
As per the calculations the Gasoline 10ppm increased by 16.98 percent in just three days from $134.39/bbl to $157/bbl, RON 92 by 14.83 percent from $120.81/bbl to $138.73/bbl and RON 95 by 14.37pc from $124.68/bbl to $142.60/bbl.
The increase of petrol and HSD prices will increase the payment of PDC to almost 25 percent higher than the government estimated Rs12 billion per fortnightly. Maintaining the prices of petroleum products is costing the government Rs52 billion on account of budget Petroleum Levy and GST for one fortnightly and billions of rupees on account of PDC.
