ISLAMABAD, June 30: The stakeholders in oil sector have termed the fiscal year 2010-11 as a bad year for their business, with the diesel and petrol reaching the highest price level, leading to decline in sales and increasing the cost of doing business.
The prices of petroleum products increased up to 31 per cent during the fiscal year adding fuel to the already high inflation.
“This has been a bad year for our business- the cost of purchasing oil has increased as we have to pay in advance to buy petrol or diesel to the oil marketing companies,” said Raja Wasim, member of All Pakistan Petroleum Dealers Association.
Besides, the most serious impact of high prices is that people have restricted their diesel, petrol consumption, he added.
He said that the motor cycle owners purchase petrol worth Rs30 and Rs50 and those who own cars do not get the fill by litres.
They all ask for petrol in terms of rupees and as the prices have increased the sales volumes have gone down.”
By the end of 2010-11 the price of HOBC almost reached to Rs100 mark, as its price on June 30, was Rs99.92 per litre against Rs80.61 per litre on July 1, 2010.
During the year the fuel prices also reached their highest level with diesel (HSD) — the most widely consumed product peaked to Rs97.31 per litre and petrol was Rs88.41 per litre for the month of May, 2010.
During the year diesel prices increased by more than 31 per cent to Rs94.11 per litre on June 30, 2011 compared to Rs71.58 at the start of the fiscal year.
Around 600,000 tons of HSD is consumed monthly by the heavy transport, railways and electricity generators.
The price of petrol increased by Rs18.76 per litre or 27.65 per cent to end the year at Rs86.71 against Rs67.95 at the start of the fiscal.
The stakeholders have contested the Ogra claim that local prices are linked with world rates saying the government does not pass on the decline in true sprit.
The oil prices declined between 19 and 21 per cent in three months but the impact in the country is limited to Rs2 and Rs3 only, said Zafar Elahi, chairman All Pakistan Petroleum Dealers Association- Punjab chapter.
On the other side the petrol pumps and the oil marketing companies have made benefits due to the inventory gains, too, as the previous stocks were sold at higher prices after increase in rates.
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