Oil prices to be slashed by 8 rupees

[Donatello]

Brent on Sept 1, 2014 $101.65/bbl price now $85.64/bbl

Dubai on Sept 1, 2014 $100.30/bbl price now $83.95/bbl



Mogas 95 RON on Sept 1, 2014 $109.85/bbl price now $93.98/bbl

Kerosene on Sept 1, 2014 $113.70/bbl price now $96.86/bbl

Gas oil on Sept 1, 2014 $114.04/bbl price now $94.68/bbl


Fuel oil 180 on Sept 1, 2014 $680.65/metric ton price now $466.30/metric ton



I barrel has about 159 litres. In other words Arabian Gulf prices for gasoline dropped by 10 cents per litre, kerosene prices by about 10.50 cents per litre and diesel prices by about 12 cents per litre.


Based on the above a reduction of Rs8/- per litre is no too bad.

How much is the current government subsidy?

 

[Cheetah786]

So... Anyone who talks about the current govt is a supporter now, yeah?
Well, Unfortunately for you..
hes an MQM worker.

I take it you can't read.






ISLAMABAD: Amid continuing slide in oil prices, the government is expected to increase on Wednesday margins and commissions of marketing companies and petroleum dealers.

This would be one of the key items on the agenda of the meeting Economic Coordination Committee (ECC) of the Cabinet to be presided over by Finance Minister Ishaq Dar. The committee is also to consider changing pricing mechanism for compressed natural gas (CNG) and allow tax free supply of proposed imported liquefied natural gas (LNG) to CNG stations.

The ECC is also expected to allow import of 485,000 tonnes of urea involving Rs4 billion subsidy to meet fertiliser requirement in Rabi season.

A summary for the ECC seen by Dawn suggest the OMC’s margin on high speed diesel (HSD) currently stood at Rs1.89 per litre which has been proposed to be increased to Rs2.05 per litre, an increase of 19 paisa per litre.

Likewise, the commission for dealers currently at Rs2.30 per litre has been proposed to be jacked up to Rs2.70 per litre.

This change is proposed at a time the prices of all petroleum products are estimated to come down by Rs5-6 per litre with effect from November 1, 2014, for which the regulator would forward a formal summary to the government on Wednesday.

A study conducted by the Pakistan Institute of Development Economics (PIDE) had proposed up to 30pc increase in the margins of dealer and oil companies but opposed price deregulation saying the Pakistani market was not fit for competition and any such move could lead to increased monopoly by a few because of bigger size of older companies.

The petroleum ministry has, however, proposed full independence to oil marketing companies (OMCs) to fix prices of petroleum products, particularly petrol, at retail stage for a trial period of six months but some ministers and other stakeholders have expressed their reservations.

It has proposed that dealers will be bound to display both OMCs and dealer margins clearly at their retail outlets which will be strictly monitored by Ogra and respective OMC so that consumers could make a choice.

The ministries of Finance, Planning and Development, Federal Board of Revenue and Oil and Gas Regulatory Authority (Ogra) have opposed the proposal.

Ogra had pointed out that deregulation of margins will make ineffective the use of petroleum levy as a cushion to absorb any abrupt changes in the international prices.

The Planning Commission said the consumer price variation after deregulation of petrol would undermine the concept of inland freight equalisation margin that balances prices across the country. Even in future, the government should as a test case deregulate freight margin first, examine its results and then go for further deregulation.

It also supported Ogra’s view saying the independent consultant had also pointed out that deregulation would further worsen the problem. It said a detailed and well-defined oil downstream policy covering refining, logistics and marketing be formulated for clarity and in the light of best practices in the region.

The FBR said after deregulation of margins, collection of sales tax, particularly on dealers margin would become practically impossible as hardly any dealer was registered for sales tax.

The government had increased 25 paisa and 41 paisa per litre in margins on sale of petrol for oil companies and dealers respectively in February 2013. As a result, OMCs currently get Rs2.23 per litre margin on petrol and dealers get Rs2.78 per litre.

Published in Dawn, October 29th , 2014

 

[TheNoob]

I take it you can't read.






ISLAMABAD: Amid continuing slide in oil prices, the government is expected to increase on Wednesday margins and commissions of marketing companies and petroleum dealers.

This would be one of the key items on the agenda of the meeting Economic Coordination Committee (ECC) of the Cabinet to be presided over by Finance Minister Ishaq Dar. The committee is also to consider changing pricing mechanism for compressed natural gas (CNG) and allow tax free supply of proposed imported liquefied natural gas (LNG) to CNG stations.

The ECC is also expected to allow import of 485,000 tonnes of urea involving Rs4 billion subsidy to meet fertiliser requirement in Rabi season.

A summary for the ECC seen by Dawn suggest the OMC’s margin on high speed diesel (HSD) currently stood at Rs1.89 per litre which has been proposed to be increased to Rs2.05 per litre, an increase of 19 paisa per litre.

Likewise, the commission for dealers currently at Rs2.30 per litre has been proposed to be jacked up to Rs2.70 per litre.

This change is proposed at a time the prices of all petroleum products are estimated to come down by Rs5-6 per litre with effect from November 1, 2014, for which the regulator would forward a formal summary to the government on Wednesday.

A study conducted by the Pakistan Institute of Development Economics (PIDE) had proposed up to 30pc increase in the margins of dealer and oil companies but opposed price deregulation saying the Pakistani market was not fit for competition and any such move could lead to increased monopoly by a few because of bigger size of older companies.

The petroleum ministry has, however, proposed full independence to oil marketing companies (OMCs) to fix prices of petroleum products, particularly petrol, at retail stage for a trial period of six months but some ministers and other stakeholders have expressed their reservations.

It has proposed that dealers will be bound to display both OMCs and dealer margins clearly at their retail outlets which will be strictly monitored by Ogra and respective OMC so that consumers could make a choice.

The ministries of Finance, Planning and Development, Federal Board of Revenue and Oil and Gas Regulatory Authority (Ogra) have opposed the proposal.

Ogra had pointed out that deregulation of margins will make ineffective the use of petroleum levy as a cushion to absorb any abrupt changes in the international prices.

The Planning Commission said the consumer price variation after deregulation of petrol would undermine the concept of inland freight equalisation margin that balances prices across the country. Even in future, the government should as a test case deregulate freight margin first, examine its results and then go for further deregulation.

It also supported Ogra’s view saying the independent consultant had also pointed out that deregulation would further worsen the problem. It said a detailed and well-defined oil downstream policy covering refining, logistics and marketing be formulated for clarity and in the light of best practices in the region.

The FBR said after deregulation of margins, collection of sales tax, particularly on dealers margin would become practically impossible as hardly any dealer was registered for sales tax.

The government had increased 25 paisa and 41 paisa per litre in margins on sale of petrol for oil companies and dealers respectively in February 2013. As a result, OMCs currently get Rs2.23 per litre margin on petrol and dealers get Rs2.78 per litre.

Published in Dawn, October 29th , 2014

I take it, You're a sheep!

 

[Cheetah786]

I take it, You're a sheep!

I am sorry i am not related to you.

 

[TheNoob]

I am sorry i am not related to you.

I'm a glorious chicken.
So its obvious you are not related to me in any way.

Mr Captain Obvious Sheep.

 

[WishLivePak]

So... Anyone who talks about the current govt is a supporter now, yeah?
Well, Unfortunately for you..
hes an MQM worker.

dont burst his bubble =[

 

[IceCold]

Gullu Butt, this is what the article says



Gullu Butt, this is what you said



You try to make it look like it was PML_N that was some how making this possible.

Your avatar is big give away who you are. Potian Retard AKA PML_N fan , which i am not. Thanks for the honor ,but i suggest you earned it it looks good on you.

He's an Idiot who takes a meaning of everything according to what his puny brain can comprehend. Dont take him too seriously.

 

[Imran Khan]

BTW why too much politics in this thread ? govs all over the world always up down prices .humari aik dosry ko bateen sunaay bagher rooti hazam nhi hoti kya?

 

[WishLivePak]

BTW why too much politics in this thread ? govs all over the world always up down prices .humari aik dosry ko bateen sunaay bagher rooti hazam nhi hoti kya?

idiot @Cheetah786 brought PMLn in this thread. There was no mention of PMLn. But the hands were itching to discuss pmln. Because Imran asked for gas price drop and Nawaz delivered some of it.