The Oil Companies Advisory Council (OCAC) has penned a letter to the Oil and Gas Regulatory Authority (OGRA), advocating for an upsurge in the price of high-speed diesel (HSD) for the initial half of August.
As per industry sources, the plea for an increase of Rs10 to Rs12 per litre is grounded in considerable losses stemming from escalated import expenditures and diminishing domestic prices.
The OCAC referred to the most recent cargo imported by Pakistan State Oil (PSO), the country’s chief fuel supplier. The industry believes the actual premium of $11.50 per barrel should be mirrored in the diesel prices, equating to a rise of Rs10 to Rs12 per litre for HSD.
Anticipating Potential Losses Amid Government Decisions
The industry warns of a looming loss between Rs9 billion and Rs8 billion for the sector if the government chooses to maintain the existing diesel price, abiding by its interpretation of the Economic Coordination Committee’s decision from July 2020. The decision was intended to ensure accurate inventory cost recovery.
The OCAC further highlights that political considerations such as price reductions to attract voters in the impending elections could inflict losses between Rs24 billion and Rs25 billion on the energy sector. This comes from an already experienced loss of Rs11 billion in the latter half of July, attributed to the Rs7 per litre decline in HSD.
To prevent further industry losses, the OCAC has appealed to OGRA to set HSD prices for the initial half of August, grounded in the premium applicable to the latest HSD cargo imported by PSO.
The OCAC has suggested a meeting between industry representatives and OGRA’s finance and supply chain teams to deliberate on an agreeable resolution. The industry hopes to use this platform to detail its viewpoint, thereby ensuring the price for the initial two weeks of August is determined with their input.
 has approached the Oil and Gas Regulatory Authority (OGRA) for an increase in high-speed diesel (HSD) prices for the first half of August. Find out more about the proposed change and the potential impact on the industry.){kind=link}