Islamabad April 16 2022: Keeping the petroleum prices unchanged will cost PKR 60 billion in shape of cash subsidy and PKR 110 billion a month for foregoing Sales tax and Petroleum Development Levy, says Samiullah Tariq while talking to local TV channel.
Prime Minister of Pakistan rejected Oil and Gas Regulatory Authority summary to increase High Speed Diesel (HSD) and MS (Petrol) prices by PKR 119.88 per liter and PKR 83.3 per liter effective from 16th April 2022.
During the month of March 2022, HSD sales increased 29% to 691 k tons and Petrol sales increased 13% to 774 k tons due to unchanged petroleum prices despite significant increase in international oil prices, according to data released by OCAC.
Significant increase in demand of Diesel may lead to product shortage as reduced Russian diesel and gasoil exports have had a domino effect on global diesel supply chains, as European refiners scramble to replace barrels in response to Russia’s military invasion of Ukraine while also looking to capture the resulting high diesel crack spreads.
