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PSO charging 77 paisas extra on HSD

02 August, 2012

ISLAMABAD:Pakistan State Oil has so far declined to act upon the notification of Ogra pertaining to POL price determination for the first half of August as it is charging 77 paisas extra on the price of high-speed diesel (HSD) oil.

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ISLAMABAD:Pakistan State Oil has so far declined to act upon the notification of Ogra pertaining to POL price determination for the first half of August as it is charging 77 paisas extra on the price of high-speed diesel (HSD) oil.

Informed circles told TheNation that Oil and Gas Regulatory Authority (Ogra) and Pakistan State Oil (PSO) are at loggerheads over the per litre price determination of high-speed diesel (HSD) for first fifteen days of August. Contrary to the Ogra’s notified price of (HSD) oil, state owned enterprise PSO, at its own will, has put extra burden of 77 paisas on the poor masses despite the fact that the regulator had determined the price of HSD at Rs101.79/litre. They further told that with this decision PSO would annually collect heavy amount worth of Rs 4 billion and 35 crores from the hard-pressed consumers.

However, available documents with this scribe have further confirmed the info that PSO had earlier requested the Ogra to grant permission to the state-owned entity to put extra burden on the consumers under the head additional premium, conversion factors and additional losses on account of importing HSD. But, the regulatory authority, while rejecting the PSO plea, had advised the oil giant that it could not charge extra amount from the consumers. The regulator further advised the PSO to claim additional 77 paisas per litre under the head Price Differential Calim (PDC) from the federal government. However, PSO, contrary to the Ogra notification, has started charging the consumers in spite of claiming this amount from the incumbent government.

It must be noted here that in accordance with Ogra’s notification, after a raise of Rs 4.58/litre effective by 1st August, the maximum ex-depot price of HSD as per government-approved formula has been decided at Rs101.79/litre for 1st fifteen days of August. However, making mockery of the notification of regulatory authority, the PSO on its website has placed price as Rs102.56/litre.

When contacted, PSO spokesperson said that HSD is a deregulated product and Oil Marketing Companies (OMCs) are authorised to set their own prices while keeping in view the cost borne by the company to arrange it. Further, as per the written directives of the ECC of the cabinet, actual import cost borne by the OMCs is to be passed on to the consumers so is this difference in the price of HSD. She further said that PSO, on the directions of the government to import cargoes at urgent basis to avoid shortage in the country due to CNG crisis, had imported cargo on urgent basis at higher cost from the open market especially in comparison with the cost that was borne while importing HSD from Kuwait Petroleum Corporation (KPC) in the past.

End.


 
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