ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has directed to determine price of petroleum products fortnightly basis and shift the Pakistan State Oil (PSO)'s price bench mark to Platts indexes with effect from September 1, 2020.

The directive has been issued to regulator in line with the decision of Economic Coordination Committee (ECC) on July 28, 2020 after fuel crises hit various parts of the country. Under the new guidelines, Oil Marketing Companies (OMCs) and refineries will determine the ex-refinery prices of petrol and high speed diesel (HSD) on Arab Golf Platts daily FOB average for the number of days in the pricing period as the base commodity price. Premium above plats, freight and incidentials to be taken as average of PSO's procurement for the pricing period and added to the base commodity average price in a (above) as per existing practice. Taxation and levies will be applicable rates.

Exchange rate to be used as provisionally available for PSO but to be converted to actual upon retirement of LC (not later than 60 days from B/L date), any adjustment to be made as prior period adjustment as per present practice, already approved by ECC vide its decision taken on April 9, 2020. Other cost components may also be adjusted on actual basis in next fortnight/ month.

PSO would arrange long term agreement of petrol to avail discounted premium as prevailed in case of HSD and KPC.

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

In light of Cabinet Committee on Energy decision regarding import of Euro-V, a policy guideline also conveyed to OGRA on August 18, 2020.

The cabinet has vetted the decision of ECC regarding fortnightly pricing of petroleum products.

Copyright Business Recorder, 2020