Up to Rs 15 reduction in petrol price likely

[datalibdaz]

Tax collection will take hit unless taxes are not increased on petrol.

Yes Dear Tax collections will take a hit, between 60 to 70 Billion Rupees, but on the other end the decrease in oil prices will save Pakistan a Precious 4 to 4.5 Billion Dollars...That is some money coming in GOP Pockets..Hope this eases the pressure on the economy.

 

[Hyde]

The biggest beneficiary of low oil prices will be the energy sector which would probably be saving up to 40% costs in fuel prices at current $60 per barrel from around 100 dollars a barrel. It also means cheap generation cost, less import bill and more electricity generation as we can afford to buy more oil. Big sigh of relief for the common man

 

[SBD-3]

If barrel of oil goes from 100 Dollar to 50% price

Should the price to consumer not be reduced by 50% ?

Just saying - mere 4-5 rupees is nothing should be 50% reduction in rates

The supply of oil js not at the current rate. A deal done at current takes ~2-3months in delivery of crude. Plus the oil prices qouted are those of crude oil, not refined products like petrol,diesel etc.

Good idea but the tax-chors and political parties will raise hell. If it were up to me, I'd start using this money to retire some internal and external debt.

Govt already charges a petrolium development levi and sales tax. They are already getting enough.

 

[farhan_9909]

Yes Dear Tax collections will take a hit, between 60 to 70 Billion Rupees, but on the other end the decrease in oil prices will save Pakistan a Precious 4 to 4.5 Billion Dollars...That is some money coming in GOP Pockets..Hope this eases the pressure on the economy.

only 2 Billion dollars

 

[karakoram]

only 2 Billion dollars

Only 2 billion dollor :-D. :-D ? Bhai mere its 200 billion pakistani rupees aprox :-D. :-D:-D

 

[Shardul.....the lion]

Indian govt has not reduced prices greatly infact increased the excise duty on petroleum products.

In Delhi it is 61 rupees while in Maharashtra it is 68 rupees ,.......

 

[AZADPAKISTAN2009]

Before Cost of Barrel $100 USD
After Cost Barrel $50 USD

Effect on Consumer : Mere 3-4Rupees ? 0.01 USD

Someone in middle is still making a lot of profit

 

[black-hawk_101]

I think the current price should be Rs.50.

 

[Donatello]

Indian govt has not reduced prices greatly infact increased the excise duty on petroleum products.

In Delhi it is 61 rupees while in Maharashtra it is 68 rupees ,.......

Move to Pakistan.

@niaz

Sir how much subsidy is still there on the petroleum? I believe this is the time to remove all subsidy.

 

[niaz]

Move to Pakistan.

@niaz

Sir how much subsidy is still there on the petroleum? I believe this is the time to remove all subsidy.

Honourable Donatello,

Fundamental strength & weakness of the market is dictated by the international crude prices. Alas no one has a crystal ball to accurately forecast future price, I can only quote from an analytical market report that I subscribe.

“Technicals are in control at this point, and with Brent back under $60 and WTI under $55 it seems almost a foregone conclusion that WTI is going to test $50 tomorrow, or very early next week. The bears are going to jump in on any sign of market weakness to see where buyers are prepared to stand their ground.”

I also get daily international spot prices. Arab Gulf spot prices as of Friday 18th December close of business were:

Gasoline -95 RON $66.37 per bbl., Jet/Kerosene $73.20 per bbl., Gas oil (0.5% S) $71.83 per bbl. and HSFO 180 CST (Furnace oil) $307.60 per metric ton.

Let us be conservative and assume freight from Arab Gulf ports to Karachi including insurance & transportation loss at $1.50 per bbl. Since one barrel has about 159 litres (158.987 to be exact). Friday’s delivered price to Karachi without any custom duties & taxes come to:

95 Ron gasoline about 43 cents per litre, kerosene 47 cents per litre and gas oil/diesel at 46 cents per litre.

One must add about 10 cents per litre storage & marketing costs to this number. In other words if there were no gov’t duties & taxes petrol in Karachi should be selling at Rs 53 per litre, kerosene at Rs 57 per litre & diesel at Rs 56 per litre. However because of uniform prices (same in Karachi as in Peshawar) one must also add freight equalization to these numbers to arrive at realistic ex-duty selling price.

However, before we come to any conclusion, we must keep in mind that prices fluctuate every day and actual FOB ( Free on board) price applied to a shipment is normally based upon average of 5 days around Bill of Lading date. Some sales contracts are also priced on average of the month.

I don’t know current prices of petroleum products in Pakistan but I would guess that falling prices have automatically eliminated need for any subsidy.

Trust the above clarifies the situation to your satisfaction.

 

[Donatello]

Current petrol price is 85rs/L and expected to drop further down to 70s range. I think this is good time to not only remove subsidy but also start taxing on HOBC etc...

 

[niaz]

Current petrol price is 85rs/L and expected to drop further down to 70s range. I think this is good time to not only remove subsidy but also start taxing on HOBC etc...

It is certainly cheaper that in the UK. Despite the fact that ex pump price here is de-regulated, cheapest price regular gasoline (95 RON) that I could buy today was $1.14 per litre or Rs 170 per litre.

Just goes to show that governments everywhere use petroleum products as a major source of revenue.

 

[T90TankGuy]

84.5pkr or 52 INR

Do you have a subsidy? cuz in India petrol and diesel is deregulated.

 

[American Pakistani]

IMO petrol prices should not be dropped at all. If people want cars they should pay for gas from their pockets. Nations money should not be spend on these useless subsidies. In US, govt generates money. The gas price in US is $3 per gallon.

 

[Donatello]

It is certainly cheaper that in the UK. Despite the fact that ex pump price here is de-regulated, cheapest price regular gasoline (95 RON) that I could buy today was $1.14 per litre or Rs 170 per litre.

Just goes to show that governments everywhere use petroleum products as a major source of revenue.

I know sir, UK is shyt expensive...that's why you see only small engined cars there.......but then they pay for the more expensive Brent Crude.....UK is not at all energy secure for the future just like many european nations.