OCAC urges OGRA to reevaluate diesel pricing for August
The previous fiscal year was the worst for Pakistan’s oil consumers during which they paid the highest rate of GST on diesel. PHOTO: FILE
The Oil Companies Advisory Council (OCAC) has called on the Oil and Gas Regulatory Authority (OGRA) to reconsider the diesel price calculation for August 1, 2023, based on the actual “premium” applicable on the latest High-Speed Diesel (HSD) cargo imported by Pakistan State Oil (PSO), which amounts to $11.50 per barrel (BBL).
In a letter addressed to OGRA, OCAC expressed its appreciation for the detailed explanation provided during the product review meeting on July 19-20, 2023, regarding OGRA’s interpretation of ECC’s decision, from July 28, 2020, on the usage of “applicable” premium. However, OCAC reiterated that the essence of ECC’s decision was to ensure accurate recovery for inventory acquired at prevailing rates in the previous fortnight.
OCAC pointed out that as no molecule of HSD was imported during the first fortnight of July 2023, the premium pertaining to the available imported product, which is $11.50 per BBL, should have been used for price computation. Instead, the usage of the “applicable” premium of $4.20 per BBL resulted in significant losses for the industry, contrary to their understanding of the ECC’s decision.
To avoid further losses for the industry, OCAC strongly recommended that the HSD pricing for the first fortnight of August 2023 be based on the actual premium applicable on the latest HSD cargo imported by PSO, i.e., $11.50 per BBL. They urged OGRA to organise an urgent meeting with industry members.
Published in The Express Tribune, July 28th, 2023.
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