The Petroleum Division on Sunday turned down views of Analyst Dr Farrukh Saleem on the recently increased petroleum prices by the government, terming it 'misleading.'
The contents, posted by the analyst through his vlog on social media that the prices of petrol had gone up only by 17 percent internationally in the last one month, were 'misleading and ignore the 30-45 days pricing cycle used in Pakistan as per regulation,' it said in a news release.
The Petroleum Division said the base price of petrol in Pakistan was fixed on the basis of Pakistan State Oil's (PSO) actual imports, which were linked with international Arab Gulf Platts.
It said all cargoes imported since the last cargo used in the preceding price announcement were averaged to arrive at the prices for the following month. 'The base price for PSO used for June 1, 2020 was $ 17.79/bbl [per barrel) which included all cargoes from end of April till third week of May 2020. The average price of PSO purchases from such time to June 26, 2020 was $ 38.32/bbl showing an increase of over 100 percent, all linked to international prices.'
Therefore, the Petroleum Division said, the prices announced on June 26 were reflective of international prices, based on PSO pricing cycle, and did not give any net benefit to Oil Marketing Companies (OMCs). 'Even after this increase, the current petrol prices in Pakistan are significantly cheaper than region and most oil importing countries.'
© Pakistan Press International, source Asianet-Pakistan