ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has endorsed Pakistan State Oil’s claim for an exchange rate adjustment of Rs1.43 per litre on high-speed diesel (HSD) and 32 paisa per litre on petrol.

This adjustment will be applied in the price review of petroleum products for May 16-31.

During the first half of May, PSO’s exchange rate adjustment was negative 13 paisa per litre on petrol and HSD. For the second half of May, PSO claimed an increase of Rs1.43 per litre on HSD and 32 paisa per litre on petrol. The difference has been Rs1.55 per litre on HSD and 45 paisa per litre on petrol.

PSO allowed per litre exchange rate adjustment

The PSO exchange rate is currently benchmarked under the existing pricing formula.

In the price build for May 16, the cost of PSO supply (average of Platts with incidentals and duty) reduced by Rs15.77 per litre on petrol and by Rs9.53 per litre on HSD compared to the first review period of May 1-15.

The ex-refinery price of petrol was reduced by 15.32 paisa, while on HSD, it decreased by Rs7.97 per litre.

The Import Fuel Equalization Margin (IFEM) on HSD increased by two paisa, and extra margin increased by seven paisa.

Similarly, the IFEM margin on petrol decreased by Rs7 paisas per litre.

The Oil Companies Advisory Council (OCAC) repeatedly asked the Secretary of Petroleum and the OGRA chairman, urging compensation for exchange losses based on the actual losses rather than the existing formula tied to the exchange losses and gains of PSO.

Copyright Business Recorder, 2024