Petrol Prices should be less than Rs 50/Litre | All Energy & Gas Prices Must be Reduced

[Gentelman]

There are many so called philosophers and economists here passing on their analysis but before passing on all of this shitt try comparing Petrol Rs/l in parkistan vs price in other neighboring countries....
In Pakistan its already lower than many of our neighbors!
Stop listening, start comparing yourself.

 

[Dr. Strangelove]

If you buy from USA then the time is around 45 days. But the question is not when the crude reaches supply chain but the question is why aren't we ordering now when the prices are low. It can reach later but at least we can order now.

First It will take considerably longer than 45 Days US isn't around the corner from us like KSA is you can easily add 30 more days for Transportation Oil Tanker are Slow Fcukers.

Pakistan these days gets most of Its oil on Deferred Payment Agreement with KSA. If you Include the transportation cost of bringing oil from US then you wont save much even if you get them to sell you in the first place they wont be eager to sell you if they arnt making a profit.

A memorable tweet of a genius. I don't know where has this genius gone.

Now coming to this Part Ever Since this Government came Taxes of Energy as a Percentage have consistently came down.
The Tweet in question happened in 2016 during the Russo-OPEC Oil war of 2015-2016 Oil came down to 24 Dollars per Barrel for a few months that year the Prices of oil started increasing after they Reached an Agreement later that Year.

Considering the Devaluation of Rupee and increase in oil price PTI did a good job keeping oil Prices relatively lower than the other non oil producing nations in the region.

Last Year
In the Senate meeting, it was also briefed that the government has been buying petrol at a rate of Rs62.55, however, the selling price is Rs98.89 per litre.

Same as with diesel, the government’s buying cost is Rs70.26 whereas it is sold at the rate of Rs117.43 per litre.

The buying price of kerosene oil is Rs69.65 and the selling price is Rs89.31 per litre.

The government has been buying light diesel oil at a price of Rs66.44 and is selling it at a rate of Rs80.54 per litre as per the documentation.

This gives over all Tax range between 17.5 to 40 Percent a lot less than it used to be. This includes. The Buying Price mentioned only includes cost of Refining and Transportation from the Source. The so called Taxes include the following.

• Levy on petrol
• Customs Duty
• General Sales Tax (GST)
• Dealer margin
• Inland freight margin
• Oil company margin

PM and his Advisor on Energy has already stated during their meeting with journalists that they will decrease Prices by 25-30 Rupees when the cheaper stock Reaches the Markets.

 

[BATMAN]

I wonder what the incompetent so called leaders of Pakistan are doing?

Naya Pakistan is doing deliberate mismanagement from day one... i'm surprised no one noticed that!
This new party is here to accelerate Indian cold start.

 

[Syed1.]

Naya Pakistan is doing deliberate mismanagement from day one... i'm surprised no one noticed that!
This new party is here to accelerate Indian cold start.

Even mohallay ki phoppos have more informed opinions than this guy.


Any proof of what you are saying or just shooting from the hip as is the norm for patwaris? Btw may I remind you how Nawaz Sharif invited Modi the killer of Muslims to his granddaughter's wedding. Talk about loyalty to the state. Your kind never like it when this inconvenient fact is mentioned.

 

[Asian.Century]

Petrol price: daylight robbery by government & Oil companies?

By BR Research 2020

Petrol prices went down by only Rs15/ltr as part of the Covid-19 relief package. That the price change came a week before schedule, qualifies as a relief step. The Special Assistant on Petroleum Nadeem Babar had initially hinted that this was a result of a considerable reduction in Petroleum Levy. One was under the impression that the actual benefit of decline in global crude oil prices will follow on April 1, and this is a relief purely based on PL.

But there came Ogra's own details. And the “sizeable" reduction in PL reads a paltry Rs2.59/ltr. Another Rs2/ltr have been slashed from the GST. The remaining price cut deals with actual reduction in global Arab Gulf Gasoline prices. This makes one wonders if the government actually passed on the benefit to the consumers or made more money out of the situation.

Some math would help. The relevant benchmark crude price for the period from February 27, 2020 to March 23, 2020 averaged $40.43 – or 35.2 percent lower month-on-month. The rupee did lose some value, but the change in rupees term was almost identical at 34.2 percent month-on-month at Rs39.9/ltr.

Now move to the base price for PSO, which is the cost of supply of the refined product. There is a 15.5 percent month-on-month reduction in base gasoline price. Surely, the crude oil undergoes refining process, hence the percentage change in crude and refined products will always vary.

But hold on here. Never in at least last four years, has the differential between crude and refined gasoline been this big. The average four-year ratio of base price to crude oil price is 1.08, with the highest value at 1.19 (see table). The ratio suddenly jumps to 1.4 for March 24 announcement. What have the refineries suddenly started to do? Why the sudden spike? What is the explanation there?

Had the ratio stayed 1.1 – the base price would be lower by another Rs12/ltr and the retail price by Rs14/ltr to Rs82/ltr. Nadeem Babar and Co. would do well to explain this price breakup. These are tough times, and criticism may seem out of place. But when you announce measures in the name of relief package, there should be transparency, which is clearly lacking here.

https://www.brecorder.com/2020/03/27/584037/petrol-price-daylight-robbery/

 

[ejaz007]

First It will take considerably longer than 45 Days US isn't around the corner from us like KSA is you can easily add 30 more days for Transportation Oil Tanker are Slow Fcukers.

Pakistan these days gets most of Its oil on Deferred Payment Agreement with KSA. If you Include the transportation cost of bringing oil from US then you wont save much even if you get them to sell you in the first place they wont be eager to sell you if they arnt making a profit.

Now coming to this Part Ever Since this Government came Taxes of Energy as a Percentage have consistently came down.
The Tweet in question happened in 2016 during the Russo-OPEC Oil war of 2015-2016 Oil came down to 24 Dollars per Barrel for a few months that year the Prices of oil started increasing after they Reached an Agreement later that Year.
View attachment 626243
Considering the Devaluation of Rupee and increase in oil price PTI did a good job keeping oil Prices relatively lower than the other non oil producing nations in the region.

Last Year
In the Senate meeting, it was also briefed that the government has been buying petrol at a rate of Rs62.55, however, the selling price is Rs98.89 per litre.

Same as with diesel, the government’s buying cost is Rs70.26 whereas it is sold at the rate of Rs117.43 per litre.

The buying price of kerosene oil is Rs69.65 and the selling price is Rs89.31 per litre.

The government has been buying light diesel oil at a price of Rs66.44 and is selling it at a rate of Rs80.54 per litre as per the documentation.

This gives over all Tax range between 17.5 to 40 Percent a lot less than it used to be. This includes. The Buying Price mentioned only includes cost of Refining and Transportation from the Source. The so called Taxes include the following.

• Levy on petrol
• Customs Duty
• General Sales Tax (GST)
• Dealer margin
• Inland freight margin
• Oil company margin

PM and his Advisor on Energy has already stated during their meeting with journalists that they will decrease Prices by 25-30 Rupees when the cheaper stock Reaches the Markets.

I am no aware of the source of your data. Present government has increased tax on petroleum products to raise revenue.

https://www.dawn.com/news/1537805

Your estimate of travel time from USA to Karachi is also not accurate. I doubt it takes 75 days fro tanker to reach Karachi from USA.

 

[Asian.Century]

I am no aware of the source of your data. Present government has increased tax on petroleum products to raise revenue.

https://www.dawn.com/news/1537805

Your estimate of travel time from USA to Karachi is also not accurate. I doubt it takes 75 days fro tanker to reach Karachi from USA.

Which is unfair, get the defence expenditures down, like non-operational defense expenditures should be much less and pay back the loans.

 

[niaz]

Firstly, the current extremely low oil price is temporary. Brent crude breaks even at about $22 per bbl. Once the Shale oil dries up and inventories are used up; oil price would recover, as a rough guess to somewhere between $30 to 35 per bbl and could even reach $40 in about a year following the end of Covid-19 pandemic. If not then oil wells would start getting plugged which would then push oil price beyond the B/E level?

Unfortunately, Pak oil industry did not invest in building storage (to the best of my info only about 2 weeks storage capacity exists) else we could have taken advantage of the low prices by storing sufficient crude, products & LNG for at least 3 months' requirements.

Secondly, foreign oil firms active in Pakistan and producing crude & natural gas have sovereign guarantees on the price that GOP must pay for their share of the production; at the time such prices were agreed, no one could foresee that Covid-19 would come and cause the oil price to drop to $20 per bbl. Do we want to invite additional billions as a penalty by reneging on these contracts and then who would invest in Pakistan in the future? Instead of trying to say at what level of oil products should be sold in Pakistan; we should be analyzing all the ramifications with a cool head before making a suggestion. Besides, it is far easier to reduce the price than to push it back up.

In my humble opinion; oil prices should be not lowered beyond a nominal amount. Lower oil prices will primarily benefit the rich transporters and the relatively well-off that have cars & Pajeros. Instead, GOP should use the tax surplus thus generated partly for reducing the Circular Debt and the rest to help the poor who are unable to afford their daily bread because of the Covid-19 lockdown.

However, everyone is welcome to disagree.

 

[BATMAN]

When petrol Prices are high during rule of Nawaz Sharif, it's stealing.
When petrol prices are high during Imran Khan rule, it's not stealing.

This is how it works in Pakistan.

Which is unfair, get the defence expenditures down, like non-operational defense expenditures should be much less and pay back the loans.

We can close parliament and cabinet. This would save billions, which we can use to order oil at lowest open market price.
If we don't have enough money , we shall ask Saudis to borrow couple of billion $ so that we can order oil for future.

Policy of Pakistanis should be that Pakistani refineries working at full capacity and selling oil cheap, so that every one shall buy it and store at least couple of barrels. .. we have population of 200 million, that shows we have unlimited storage capacity.
What state gain out of it is they may not have to buy oil for couple of years. This means less import bill and lowered inflation, which is right way of helping poor, without stealing from families of overseas Pakistanis living and spending in Pakistan.
SO as we speak, govt. should be working hard to off load petrol to public at production cost.

 

[niaz]

Policy of Pakistanis should be that Pakistani refineries working at full capacity and selling oil cheap, so that every one shall buy it and store at least couple of barrels. .. we have population of 200 million, that shows we have unlimited storage capacity.

Hon Batman,

For your kind info, GOP was thinking of shutting down 3 of the country's refineries.

"Govt mulls shutting all but two oil refineries"

By Zafar Bhutta

Published: April 1, 2020
https://tribune.com.pk/story/2188279/2-govt-mulls-shutting-two-oil-refineries/

In the other news. Attock oil refinery is partly shutting down as nationwide demand drops duce to COVID -19 lockdown.

"Local oil refining companies in trouble as demand falls amidst nationwide lockdown"
https://www.geo.tv/latest/280060-ar...s-ignore-government-advise-to-procure-locally

 

[Asian.Century]

Actually reduced by Rs 17, now Rs 97 per litre. But honestly government should make it Rs 50 per litre easy.

Fuel Prices Reduced by Upto Rs. 30 Per Liter
The federal government has officially announced to reduce the prices of various petroleum products for May owing to the unprecedented decline in crude oil prices in the international market.

According to the statement issued by the Ministry of Finance, the Government is extending maximum relief to the public. Relief Packages include Economic Stimulus Package, Ehsaas Emergency Relief Programme, Incentive Package for SMEs and many other relief packages.

The latest one is the considerable decrease in the prices of various petroleum products ranging from Rs. 15 to Rs. 30 to further facilitate the public.

The price of petrol has been brought down to Rs. 81.58 per litre after a reduction of Rs. 15 from Rs. 96.58. The price of high-speed diesel has been reduced to Rs. 80.10 per litre after a reduction of Rs. 27.15 from Rs. 107.25.

According to the notification issued, kerosene oil and light diesel will be sold at Rs. 47.44 and Rs. 47.51 per litre respectively.

The new prices will be effective starting midnight, the notification said.

https://propakistani.pk/2020/04/30/fuel-prices-reduced-by-upto-rs-30-per-liter/

 

[Enigma SIG]

When oil prices have gone into negative $40, I wonder what the incompetent so called leaders of Pakistan are doing?

Oh come on. Brent is trading at $25. Don't post stuff you don't bother to read about.

 

[ARMalik]

Oh come on. Brent is trading at $25. Don't post stuff you don't bother to read about.

Oh gosh, you decided to poke your nose here after one week, of course oil prices will be different.

 

[PradoTLC]

Don't reduce the price. Keep it as it is and benefit from it and pay back debts.

i agree

cheaper oil prices only encourages car use... we should move to mass transit system,

 

[xyxmt]

Pakistan Petrol Prices should be less than Rs 50/Litre | Gas much lesser, Petroleum prices reduce

• Pakistan import bill for Petrol, Diesel has now reduced to almost bare minimum.
• All Daily items prices must be reduced massively.
• Crude Oil is now trending at less 0$ a barrel.
• Why government is not reducing prices to under Rs 40 per litre.
• Oil is now less than $17 a barrel

Where is Pakistan government? It already has no money to pay this year that is $12 billion to return to IMF this year, also got more money. What the heck is happening?

awsome proposal,
electricity must be provided to user at cost...no profit, no taxes
Sui gas should be free as it is extracted from Pakistan.
Buy cude oil at $0 then refine it in Pakistani refinery then give it to buyers for free, Pakistani refineries should not charge for refining since they are Pakistani companies.
Money saved from IMF + extra money it got should be transferred to people.

my dear people of Pakistan, do you still believe in brain drain??