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ISLAMABAD: The interim government has allowed Pakistan State Oil (PSO) per litre exchange rate adjustment of Rs 2.58 per litre on petrol and Rs 2.95 on high-speed diesel (HSD) for the fortnight starting from January 16, 2024.

The document available with Business Recorder showed the exchange rate adjustment for PSO is up by Rs 1.59 per litre on petrol and Rs 1.76 per litre on HSD as compared with the last fortnight ended on January 15, 2024.

The average of Platts with incidentals and duty in the last two weeks decreased on petrol by Rs 6.88 per litre from Rs 186 to Rs 179.72 per litre and increased by 94 paisa on HSD from Rs 197.25 to Rs 198.19 per litre.

Petrol price cut by Rs8/litre

Ex-refinery prices for petrol decreased by Rs 8.47 per lire from Rs 185.61 to Rs 177.14 per litre and 82 paisa on HSD from Rs 196.06 to Rs 195.23 per litre.

Inland Freight Equalization Margin (IFEM) on petrol raised by 47 paisa from Rs 5.22 to Rs 5.69 per litre and the new rate of IFEM on HSD is up to Rs 4.24 from Rs 3.29 or 95 paisa raise.

The extra margin on petrol was kept unchanged, however, 12 paisa down on HSD.

On Monday, the government announced to slash the price of petrol by Rs 8 per litre and no change in HSD price.

The Oil and Gas Regulatory Authority (Ogra) had asked PSO not to include exchange rate adjustment to its price calculation and keep it at zero.

Petroleum prices are based on rates quoted by PSO.

The oil industry had alleged in previous petroleum pricing reviews that the caretaker government manipulated the oil pricing formula again by denying them the cost of different factors including exchange rate loss in an effort to keep petroleum prices low.

Copyright Business Recorder, 2024

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