Friday, April 19 2024

Government eyes deregulation of fuel prices
Amid increasing fuel prices and the oil industry’s complaints over the rising influx of smuggled oil products, the government has expedited the process of deregulating petroleum pro­duct prices to shift the brunt of public cri­ticism to oil marketing companies (OMCs). In a directive, the petroleum division has asked the Oil and Gas Regulatory Authority (Ogra) “to share a presentation on the analysis and implications of deregulation of petroleum products” within three days. This should particularly cover the “in-country freight equalisation margins (IFEM) and other related aspects”, it said. The directive came following instructions from the Prime Minister’s Office for urgent finalisation of a “deregulation framework for the petroleum sector”, a senior government official said.
Related news categories: business economic-indicators oilgas-marketing

Wednesday, April 17 2024

KATI president urges reversal of POL hike
President of the Korangi Association of Trade and Industry (KATI), Syed Johar Ali Qandhari, appealed to the government to rescind the recent hike in petroleum product prices, warning of dire consequences such as industrial closures, inflationary pressures, and a surge in unemployment if swift action is not taken. In a statement issued on Tuesday, he highlighted the pressing need to address challenges faced by industrialists to boost exports and enhance Pakistan’s economic standing. “We are already facing 38% high cost of doing business in comparison with regional countries including India, Bangladesh, Maldive, Bhutan and others,” he said. Qandhari highlighted that the escalating transportation costs are severely impacting industrialists and urged the government to promptly alleviate production costs to enhance global competitiveness. Expressing concern over the recent surge in petroleum product prices, the KATI president warned that the industry is on the brink of collapse due to rising production costs. He stressed the urgent need to mitigate these costs to ensure the competitiveness of Pakistani products in the global market, noting that neighbouring countries like India and Bangladesh have surged ahead in the region.
Related news categories: business economic-indicators oilgas-marketing

Tuesday, April 16 2024

Oil sheds 1pc after Iran attack
Oil prices sank by about one per cent a barrel on Monday after Iran’s weekend attack on Israel proved to be less damaging than anticipated, easing concerns of a quickly intensifying conflict that could displace crude barrels. Brent futures for June delivery fell 91 cents to $89.54 a barrel, a 1pc loss, by 1:17pm EDT (1717 GMT). US crude futures for May delivery fell 87 cents to $84.79 per barrel, a 1pc loss. Oil benchmarks had risen on Friday in anticipation of Iran’s retaliatory assault, with prices soaring to their highest since October. Israel’s interception of Iran’s attack, which involved more than 300 missiles and drones, calmed fears of a regional conflict affecting oil traffic through the Middle East. “The success of the Israeli defense implies that the geopolitical risk has pulled back considerably,” said Bob Yawger, director of energy futures at Mizuho bank.
Related news categories: business economic-indicators oilgas-marketing

Monday, April 15 2024

Missed opportunities
Late in December 2023, the United States Treasury warned that it would apply sanctions on foreign banks for evading the Russian price cap and called on them to boost compliance. Playing it safe, banks in China, Turkey and the United Arab Emirates (UAE) that work with Russia increased checks. They have now begun asking for extra documentation and have trained more staff to make sure deals were compliant with the price caps, Reuters reported, quoting eight sources familiar with the matter. Russian oil firms are consequently facing delays of up to several months or even rejection of money transfers into their accounts in Moscow. Cautious of US secondary sanctions, these banks are now asking clients to provide written guarantees that no person or entity from the US Special Designated Nationals (SDN) list is a payment beneficiary or involved in a deal.
Related news categories: business misc oilgas-exploration oilgas-marketing

Up to Rs8.50 hike in fuel prices likely
While the impact of the Middle East escalation is yet to materialise, the higher international market is estimated to push up the prices of petrol and high-speed diesel by about Rs2.50 and Rs8.50 per litre, respectively on Monday (April 15) for the next fortnight, despite a decline in the import premium and a slightly improved exchange rate. Informed sources said the prices of petrol and HSD had increased in the international market by about $4 and $4.50 per barrel, respectively, during the last fortnight, before the latest escalation. Depending on final calculation, the price of petrol is projected to be higher by Rs2.50 to Rs2.80 and that of HSD to go up by Rs8 to Rs8.50 per litre. Interestingly, the imp­ort premium on petrol has dropped by almost 21pc to $10.7 per barrel over the last fortnight when compared to $13.50 in last few days of March and the rupee strengthened by about 40 paisa against a dollar to Rs278.20. The net impact is estimated to be about Rs2.80 per litre increase in petrol price from existing rate of Rs289.41.
Related news categories: business misc oilgas-exploration oilgas-marketing