Every litre of fuel you consume no matter where you are in Pakistan has the same selling price – the one determined by the Oil Gas and Regulatory Authority (OGRA). The cost of transporting fuel to different parts of the country is, however, not the same. It obviously costs more to transport fuel to the north of the country, given that it mostly lands or is refined in the southern ports.
To ensure the price remains equal, the regulator has a pricing mechanism called the Inland Freight Equalisation Margin (IFEM). Don’t worry, it isn’t as complicated as it sounds – and by the end of this, you’ll get the gist of it, and something else very interesting about it. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
