Business

‘Cheap Russian crude lowers petrol by only Re1’

Published

1 year ago

Farwa

If PARCO, NRL jointly refine Russian oil then benefit could go up to Rs3 per litre.
Russia also squeezed discount to $5 per barrel at Platt price.
No company except PRL ready to refine, say authorities.

ISLAMABAD: The Petroleum Division briefed caretaker Prime Minister Anwaar-ul-Haq Kakar on Russian crude’s impact on petroleum prices, saying that the maximum benefit is quite nominal of Re1 per litre of petrol and diesel, The News reported Friday.

The division added that importing Russian crude involved two risks, including 30-36 days of transportation and 60% production of furnace oil that has to be exported at the rate of 75% of crude with a 25% loss.

No company except Pakistan Refinery Limited (PRL) is ready to refine the Russian oil, and if PRL is obliged to keep refining Russian oil, only Re1 relief can be passed on to consumers per litre of petrol, and diesel price.

The prime minister was also told that if PARCO and NRL jointly refine the Russian oil, the benefit could go up to Rs3 per litre again depending upon the volume of the Russian crude.

PARCO, being comparatively the latest refinery and better plants will help increase the yields of Russian crude and reduce the production of furnace oil to some extent. However, PARCO and NRL have refused to refine Russian oil.

Russia has also squeezed the discount to $5 per barrel at Platt price against $15-$20 per barrel, the PM was briefed.

Brent price stands at $87 per barrel and against it, Russian crude has an existing price of $73 per barrel. The cost of Russian oil has crossed the cap price of $60 per barrel imposed by G7 countries and the import of Russian oil above the cap price will trigger problems on payments issue.

The decades-old PRL refined the heavy Russian crude URAL in almost three months by blending it with crude from the Middle East and local crude. The refinery adopted the strategy of refining by blending 45% URAL, 45% crude from the Middle East, and 10% local crude.

PRL is too old as it was incorporated in Pakistan as a Public Limited Company in May 1960. PRL is a hydro-skimming refinery designed to process various imported and local crude oil to meet the strategic and domestic fuel requirements of the country.

The refinery has a capacity to process approximately 50,000 barrels per day of crude oil into a variety of distilled petroleum products such as motor gasoline, high-speed diesel, furnace oil, jet fuels, kerosene oil, and naphtha. Out of 100,000 URAL, PRL has produced 10% Mogas (petrol) 60% furnace oil and 10-15% high-speed diesel, and the remaining 15% other items.

The official said that the furnace oil out of URAL has been produced 50% with high viscosity at 700cSt and PRL has to mix 10%v diesel in it to decrease its viscosity at 180 cSt so that it could flow. This is how the furnace oil production at 180 cSt escalates to 60% and diesel production is reduced by 10%. The net diesel production stands at 10-15% out of URAL. This means that out of 100,000 tonnes of URAL crude, the decades-old PRL has to export 60% URAL crude in the shape of furnace oil at 75% of crude with a 25% loss.

Business

Minister of Finance Reaffirms Unwavering Support for APM Terminals Group in Effort to Strengthen Bilateral Cooperation

Published

22 hours ago

Farwa

Senator Muhammad Aurangzeb, Pakistan’s Minister of Finance, has promised the APM Terminals Group his full support in creating an environment that is both business-friendly and conducive to investment.

In Islamabad, he met with a group of APM terminals who had come to hear him speak. Keith Svendsen, CEO of APM Terminals, was in charge of the group.

Muhammad Aurangzeb, a senator from Pakistan, expressed his approval of APM Terminals’ investment plans.

Following last month’s signing of a memorandum of agreement to strengthen bilateral cooperation, the meeting’s emphasis was on the actions taken to date.

Business

Pakistan’s gold prices are declining.

Published

2 days ago

Farwa

Ten grams of 24 carat gold also had a price decrease of Rs. 1,115, from Rs. 239,026 to Rs. 237,911, while ten kilos of 22 carat gold saw a rise in price from Rs. 219,107 to Rs. 218.085.

The cost of ten grams of silver and one tola of silver stayed at Rs. 2,829.21 and Rs. 3,300, respectively.

As stated by the Association, the price of gold fell $13 to $2,670 on the global market.

On Monday, November 11, 24-karat gold prices fell to 3,771 Saudi Riyals (SAR) per tola in Saudi Arabia.

The price of 24-kar gold is SAR 10,067 per ounce, while 10 grams of the metal are being sold for SAR 3,237 in the kingdom, according to forex.pk.

Note: Since the prices were updated at 10:15 am on November 11, 2024, there may be some discrepancies in this post due to the dynamic nature of the gold market globally, especially in Saudi Arabia.

As the markets anticipate the Federal Reserve to take a cautious stance under U.S. President-elect Donald Trump’s administration, gold prices fell for a second session on Monday due to a stronger dollar and heightened risk appetite.

As of 09:27 GMT, spot gold was down 0.6% to $2,666.48 an ounce. The price of US gold futures dropped 0.8% to $2,673.20.

“A stronger U.S. dollar, rising Treasury yields, and increased risk appetite in financial markets are the main reasons why gold prices have declined — a trend that has gained momentum since Donald Trump’s victory in last week’s presidential election,” said Ricardo Evangelista, senior analyst at ActivTrades.

Business

Prices for cooking oil and ghee have increased in Pakistan.

Published

2 days ago

Farwa

Details show that although the price of ghee increased to Rs 550, the price of cooking oil increased by Rs 30 to Rs 560.

The market vendors said that the cost of Karachi-branded ghee had increased by an astounding Rs 120 over the past month, to Rs 500.

The Sensitive Price Indicator (SPI), which measures weekly inflation, increased by 0.28 percent for all consumer categories during the week ending October 17, according to a report released by the Pakistan Bureau of Statistics (PBS) on October 18.

In the aforementioned group, the SPI for the week under review was 319.79 points, compared to 318.91 points the previous week, according to the PBS statistics.

In the week under examination, the SPI for the combined consumption group increased by 15.02 percent compared to the same week last year.

51 important goods for all expenditure groups and 17 urban centers are covered by the weekly SPI with base year 2015–16 = 100.

Additionally, the SPI for the lowest consumption category, which is up to Rs 17,732, increased by 0.27 percent from 312.91 points last week to 313.74 points.