Update:
According to media reports, OGRA has sent a summary to the government and has suggested the prices of petroleum products for June. Interestingly, it has proposed a hike in the price of a Diesel by 5 paisay and the new price will be PKR80.10 per liter. In the case of Petrol, it has suggested a decrease of PKR 7.06, the new price will be PKR 74.52 per liter, in the case of light diesel it has proposed a decrease of PKR 9.37 and the new price will be PKR 38.14 per liter. Kersone will see a decrease of PKR 11.88 and its new price will be PKR 35.56 per liter.
According to reports, there will be a substantial decrease in the price of petrol with sources stating it could be Rs. 10-15 per liter.
If it happens it will be due to the fall in the price of oil in the international market as the government seeks to provide relief to the people due to the coronavirus situation. As per the details, OGRA is working out the prices based on the imports by PSO at the end of April and start of May.
It is pertinent to point out that at the end of April; the price of oil in the global market had fallen to historic lows amidst the global lockdown.
According to sources, the Ex-Refinery price for June will be slashed by Rs. 15/ltr. While this could help boost the economy due to low import cost it could potentially lead to a severe shortage of petrol. As refineries will find it tough to process crude oil at a high price and then sell refined products such as petrol at a lower price.
It is noteworthy that oil marketing companies will be hesitant to import petrol from the global market as it is more than double the cost of PSO’s import cost.
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