Pakistan raises local gasoline prices on higher crude rates
Wednesday, 2 September 2009
ISLAMABAD, Sept. 1 (Bloomberg): Pakistan increased domestic fuel prices from today, according to a statement by the regulator, which didn't cite a reason.
The government raised gasoline prices by 4.80 rupees (5 cents) a liter to 65.13, while the cost of diesel was increased by 3.69 rupees to 56.96, according to a statement on the Web site of Islamabad-based Oil & Gas Regulatory Authority.
The price of kerosene oil was increased 2.69 rupees to 60.60 rupees a liter, it said.
The prices were increased because of an increase in global crude costs, according to a report in the Dawn newspaper today.
Pakistan reviews domestic oil prices regularly to reflect movements in global markets. The South Asian country imports about 85 per cent of the oil it uses domestically.
Meanwhile: Pakistan State Oil Ltd., the nation's biggest fuel retailer, said revenue may climb to 1 trillion rupees ($12 billion) by 2012 by increasing sales of bio-diesel and liquefied petroleum gas.
The company plans to open 200 retail outlets for LPG, a fuel used by cars and for heating at homes, by June, Managing Director Irfan K. Qureshi said in an interview in Islamabad. The company reported revenue of 719 billion rupees last fiscal year, driven by diesel and gasoline sales.
State Oil needs to diversify its earnings after reporting the first loss in 33 years, when it was formed. State Oil is investing in LPG and other fuels as Pakistan's government tries to reduce its oil import bill, which accounts for about one fourth of overseas purchases.
"I am looking at diversification as a long-term strategy," Qureshi said. "The company had gone into a slumber, it's a sleeping giant and my game plan is to wake it up."
Demand for fuels is set to rise as the economy rebounds from the slowest pace of growth in eight years. Finance Minister Shaukat Tarin expects the economy to grow 6 per cent annually in five years, compared with 2 per cent in the 12 months ended June 30.
State Oil has a 61 per cent share in the country's refined oil market and 81 per cent in crude oil sales, according to its Web site.
The new product lines and inventory gains will help State Oil return to profit this fiscal year, Qureshi said in the interview Aug. 28. The company posted a loss of 6.69 billion rupees in the year ended June 30 as declining crude prices eroded the value of its inventory.
Pakistan State Oil sells diesel, fuel oil, jet fuel, lubricants and compressed natural gas through 3,612 outlets. Last week, the company avoided defaulting on payments for oil imports after it secured a 10 billion rupee loan from banks and the government gave it an additional 5 billion rupee cash-grant.
Pakistan State Oil shares rose 1 per cent to 289.32 rupees at the 2 p.m. local time close on the Karachi Stock Exchange. The stock has doubled this year, compared with a 48 per cent increase in the benchmark stock index of 100 shares.
The company is talking to two or three "top of the line" international companies for a joint venture for branding its lubricants, Qureshi said.
Shell Pakistan Ltd., a unit of Europe's largest oil company, is the biggest retailer of lubricants used in automobiles and machines with 45 per cent of the market.
The government raised gasoline prices by 4.80 rupees (5 cents) a liter to 65.13, while the cost of diesel was increased by 3.69 rupees to 56.96, according to a statement on the Web site of Islamabad-based Oil & Gas Regulatory Authority.
The price of kerosene oil was increased 2.69 rupees to 60.60 rupees a liter, it said.
The prices were increased because of an increase in global crude costs, according to a report in the Dawn newspaper today.
Pakistan reviews domestic oil prices regularly to reflect movements in global markets. The South Asian country imports about 85 per cent of the oil it uses domestically.
Meanwhile: Pakistan State Oil Ltd., the nation's biggest fuel retailer, said revenue may climb to 1 trillion rupees ($12 billion) by 2012 by increasing sales of bio-diesel and liquefied petroleum gas.
The company plans to open 200 retail outlets for LPG, a fuel used by cars and for heating at homes, by June, Managing Director Irfan K. Qureshi said in an interview in Islamabad. The company reported revenue of 719 billion rupees last fiscal year, driven by diesel and gasoline sales.
State Oil needs to diversify its earnings after reporting the first loss in 33 years, when it was formed. State Oil is investing in LPG and other fuels as Pakistan's government tries to reduce its oil import bill, which accounts for about one fourth of overseas purchases.
"I am looking at diversification as a long-term strategy," Qureshi said. "The company had gone into a slumber, it's a sleeping giant and my game plan is to wake it up."
Demand for fuels is set to rise as the economy rebounds from the slowest pace of growth in eight years. Finance Minister Shaukat Tarin expects the economy to grow 6 per cent annually in five years, compared with 2 per cent in the 12 months ended June 30.
State Oil has a 61 per cent share in the country's refined oil market and 81 per cent in crude oil sales, according to its Web site.
The new product lines and inventory gains will help State Oil return to profit this fiscal year, Qureshi said in the interview Aug. 28. The company posted a loss of 6.69 billion rupees in the year ended June 30 as declining crude prices eroded the value of its inventory.
Pakistan State Oil sells diesel, fuel oil, jet fuel, lubricants and compressed natural gas through 3,612 outlets. Last week, the company avoided defaulting on payments for oil imports after it secured a 10 billion rupee loan from banks and the government gave it an additional 5 billion rupee cash-grant.
Pakistan State Oil shares rose 1 per cent to 289.32 rupees at the 2 p.m. local time close on the Karachi Stock Exchange. The stock has doubled this year, compared with a 48 per cent increase in the benchmark stock index of 100 shares.
The company is talking to two or three "top of the line" international companies for a joint venture for branding its lubricants, Qureshi said.
Shell Pakistan Ltd., a unit of Europe's largest oil company, is the biggest retailer of lubricants used in automobiles and machines with 45 per cent of the market.