Petroleum Division Issues Guidelines To Authorities For Future Pricing Of Petroleum Products – Research Snipers

Petroleum Division Issues Guidelines To Authorities For Future Pricing Of Petroleum Products

petrol prices

The petroleum division has reportedly issued a letter to concerned authorities including OGRA, and CEO of Oil Companies Advisory Council (OCAC). In the letter, the petroleum division has laid down the foundation of policy and listed down the points on which the OMCs and Refineries will determine the prices of Gasoline and High-Speed Diesel. The policy guidelines have been issued in order to implement the ECC’s decision to determine the prices fortnightly.

The policy guidelines mentioned in the letter are as follow;

•          Price to be based on Arab Gulf Platts daily FOB average for the number of days in the pricing period as the base commodity price.

•          Premium above Platts, freight and incidentals to be taken as the average of PSO’s procurement for the pricing period, and added to the base commodity average price

•          Taxation and Levies to be at applicable rates

•          Exchange rate to be used as provisionally available for PSO but to be converted to actual upon the retirement of LC (not later than 60 days from B/L date);, any adjustment to be made as a prior period adjustment as per present practice, already approved by ECC. Other cost components mentioned above may also be adjusted on an actual basis in next fortnight/month

•          PSO would arrange long term agreement of MS to avail discounted premium as prevailed in case of HSD with KPC

•          In case of non-availability of PSO’s premium/freight or incidentals of the previous fortnight, the PSO’s previous month available incidentals of a fortnight will be applied

•          In light of CCoE’s decision regarding import of Euro-V, a policy guideline also conveyed to OGRA by Petroleum Division to arrive at ex-refinery prices of MS and HSD may be followed.

According to the details, the letter further stated that the prices of petroleum products other than High-Speed Diesel and Motor Gasoline will be determined as per current practice on a fortnightly basis which is effective from September 1, 2020.

via Mettis Global

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