Islamabad: A local newspaper has reported that oil refineries are seeking a price increase in jet fuel being provided to various segments of the armed forces.
Oil marketing companies (OMCs) and refineries are responsible for determining prices of POL products in line with procedures approved by the Economic Coordination Committee (ECC).
Ex-refinery prices are linked to POL products imported by the state-owned entity Pakistan State Oil (PSO).
In case of no such imports being made, prices are then linked to ECC formula and those oil prices quoted in the Middle East market.
An increase of Rs1.42 per litre is being requested to Jet Propellant-8 fuel being provided to the armed forces by oil refineries.
A summary in this regard has been forwarded to the relevant authorities regarding the price increase being requested by oil refineries.
Oil refineries have also said it isn’t economically unfeasible to provide JP-8 fuel at current prices anymore.
JP-8 fuel is used by the Pakistan Air Force and other armed forces divisions for defence purposes.
This JP-8 fuel needs to be specially stored and tested dependent on specific requirement of the armed forces. Also, the rising demand of this fuel is rising exponentially because of increasing security and defence requirements.
The oil refineries have said the current pricing formula wasn’t attractive for maximizing production of JP-8 production and proposed its price to be linked with ex-refinery rate of JP-1, which is utilized by commercial airlines.