OGRA approves PSO's exchange rate adjustment for petroleum products

The Oil and Gas Regulatory Authority (OGRA) has endorsed Pakistan State Oil's (PSO) claim for an exchange rate adjustment of Rs10.96 per litre on high-speed diesel (HSD) and Rs2.12 per litre on petrol. This adjustment will be applied in the price review of petroleum products for November 16-30.

During the first half of November, PSO's exchange rate adjustment was 63 paisa on petrol and Rs5.94 per litre on HSD. For the second half of November, PSO claimed an increase of Rs5.03 per litre on HSD and Rs2.85 per litre on petrol.

On November 6, 2023, the Oil Companies Advisory Council (OCAC) addressed a letter to the Secretary of Petroleum and 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. 

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

In the price build for November 16, the cost of PSO supply (average of Platts with incidentals and duty) increased by Rs4.28 per litre on petrol but decreased by Rs9.42 per litre on HSD compared to the first review period of November 1-15. The ex-refinery price of petrol was reduced by 75 paisa, while on HSD, it decreased by Rs6.57 per litre.

The Import Fuel Equalization Margin (IFEM) on HSD reduced by 5 paisa, and extra margin increased by 14 paisa. Similarly, the IFEM margin on petrol decreased by Rs1.29 per litre.