Govt to review oil prices on fortnightly basis

The Government will implement fortnightly oil pricing of Petroleum products. It is shifting of PSO’s price benchmark to Platts indexes.

Aftab Ahmed

Islamabad: The ECC of the Cabinet has approved the subject summary. The Ministry of Energy (Petroleum Division) submitted the summary regarding fortnightly pricing of Petroleum products and shifting of PSO’s price benchmark to Platts indexes.

OMCs and Refineries will determine Motor Gasoline and High-Speed Diesel’s ex-refinery prices as per the following policy parameters. However, other petroleum products’ prices will be determined under the current practice in vogue daily. This will be effective from Sept 01, 2020.

Price to be based on Arab Gulf Platts daily FOB average for the number of days in the pricing period as the base commodity price. Similarly, it would also include premium above Platts, freight, and incidentals as the average of PS0’s procurement for the pricing period. It would also add to the base commodity average price in (a) above as per existing practice.

Taxation and Levies

The exchange rate will be used as provisionally available for PSO. But it will be converted to actual upon the retirement of LC (not later than 60 days from the B/L date). Simultaneously, any adjustment will also be made as a prior period adjustment as per the present practice. The ECC has already approved this, vide its decision date 09.4.2020. Other cost components mentioned above may also be adjusted on an actual basis in the next fortnight/month.

The PSO would arrange a long-term agreement of MS to avail discounted premium as HSD with KPC prevailed.

In case of non-availability of PSO’s premium/ freight or incidentals of the previous fortnight. The PSO’s previous month available incidentals of a fortnight will be
applicable.