Announcement

Collapse
No announcement yet.

Rs 2 billion loss on petrol export???

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Rs 2 billion loss on petrol export???

    Petrol is being sold to Pakistani consumers at Rs 31/liter, yet is being exported at Rs 11/liter? Does it take a genius to figure out this anomaly? Why not sell that petrol within the country at Rs 15/liter? The consumers will get cheaper petrol, and the refinery will get more than what it would get for exporting it. I know Pakistan has surplus gasoline, but common sense would dictate that if you know beforehand that you wont profit from the sale, then dont do it. Store it and sell it locally the following year. The gasoline is not gonna go bad. Extreme mismanagement.

    From the Dawn, thursday.
    ISLAMABAD, April 4: Pakistan would lose around two billion rupees in one year on the export of 300,000 metric ton of petrol at the rate of Rs10.97 per litre, sources said.

    Pakistan-Arab Refinery (Parco) which accepted bids for the export of 300,000 tons of surplus petrol at the rate of $240 per metric ton, is running on an annual subsidy of over Rs4 billion and the figure goes beyond Rs7 billion if hidden subsidies are included in it.

    Experts believe that exporting the motor spirit at a lower rate is double loss to the country which is producing it by offering huge subsidy and then exporting it at the price lower than its production cost.

    They say that instead of exporting the motor spirit at the lower price, the government can market the product by slashing its taxes, which will be incentive for motorists to use the motor spirit instead of the Compressed Natural Gas (CNG).

    The government is encouraging the use of natural gas as vehicle fuel and at present over 100,000 cars and pick-ups have been converted to the CNG.

    According to official figures, ex-refinery price of Parco motor spirit is Rs14.46 per litre. For exporting, it will have to pay around Rs2 per litre on the transportation of the product from the mid-country refinery in Mehmood Kot to Karachi.

    In the local market, the government is selling one litre of motor spirit for Rs30 as against Rs10.97 per litre on which it is being exported.

    After the commissioning of Parco, Pakistan was looking for a buyer for motor spirit and held negotiations with Iran which is already surplus in the production of motor spirit. Iranian motor spirit is available in most parts of Balochistan for Rs13 per litre

    #2
    I did not know that people can be that dumb.

    Comment


      #3
      The govt imports at a rate of about Rs.8-10 per liter. The rest is all tax, but the govt does not get all of it. The rest goes into the pockets. There is only one officer for this taxation dept.

      Comment

      Working...
      X