The federal government on Sunday slashed the prices of petrol and high-speed diesel (HSD) by Rs2 and Rs4.79, respectively, for the next fortnight.
According to a notification from the Petroleum Division, the new HSD price is Rs279.65 per litre, while the new rate for petrol is Rs263.45. The prices will come into effect on December 1.
Separately, the oil industry is now looking towards the apex court for withdrawal of the Sindh Infrastructure Development Cess, which may lead to the collapse of oil companies and refineries.
The Sindh government had imposed the cess on the import of petroleum products, creating financial challenges for the industry.
Ogra recently held a meeting with representatives of Pakistan State Oil (PSO) and the additional attorney general of Pakistan to discuss the issue. During the sitting, Ogra and PSO officials cautioned that OMCs and refineries would collapse due to the Sindh infrastructure cess. They discussed the situation post-27th Constitutional Amendment, where PSO highlighted that all constitutional matters were in transition phase and should be submitted to the Federal Constitutional Court (FCC).
The meeting was informed that it may take three to six weeks once cases were submitted to the FCC. However, the additional attorney general and PSO counsel will expedite it on priority. The AAGP stated that since the federal government was not a party to the court petition, it was suggested that instead of bringing Ogra to the case, the federal government may be made a respondent.
PSO pointed out that currently the main issue was the submission of bank guarantee for which the Sindh government had verbally agreed to give relaxation till December 31, 2025 due to the Supreme Court’s interim relief order, which may be vacated or revised in the very first hearing. PSO and Ogra were of the view that the industry, as a whole, was facing significant operational and financial risks as a result of the change, including the import of crude oil for refineries. Weak margins and limited credit lines make it unfeasible for the industry to submit bank guarantee amounting to billions of rupees per cargo.
Responding to that concern, the AAGP said that he would discuss the matter with the legal counsel of PSO for fixing an early date for hearing the petition in the Supreme Court, prior to the expiry of deadline for the submission of bank guarantee, which is December 31, 2025.
The meeting concluded with the understanding that the AAGP, in consultation with the PSO legal counsel and Ogra, would make all efforts to fix the court case in the upcoming week for resolution of the matter.