KARACHI, Oct 18: Pak Arab Refinery Limited (Parco) has planned to export 75,000-80,000 tons of petrol this fiscal year owing to falling local consumption caused by a meteoric rise in domestic prices in the last few years.
After the first shipment of 10,000 tons on Wednesday morning in response to a September 5 global tender, the refinery would issue another tender of 10,000 tons in a day or two as petrol had become surplus owing to frequent switching over of vehicles to CNG and LPG, refinery sources told Dawn on Wednesday.
Parco had exported 300,000 tons of petrol in 2001-02 and earned $75 million at a price ranging between $235 and $260 per ton at that time, the sources said.
The refinery has now again expedited its effort in exporting the surplus quantity after a gap of six years. In the first export of 10,000 tons for onward shipments, five parties have responded to the September 5 tender. The shipment was loaded from Pakistan State Oil’s Keamari terminal storage tanks.
A Parco official said that he could not tell the actual earning from petrol export of 10,000 tons at this moment. However, the Pakistan Oil Report 2004-05, prepared by the Oil Companies Advisory Committee (OCAC), revealed that petrol had also been exported to Afghanistan since 2000-01 through land routes but in very limited quantities. Bulk quantities had been exported through sea routes by floating international tenders by Parco.
When asked about a possible increase in petrol consumption in case government taxes (Rs27.29 per litre) are reduced, the official said it would be too late as it was difficult for over 1.1 million CNG vehicle owners to revert to petrol. At present the conversion of vehicles to CNG is still going on at a very fast pace.
The maximum ex-depot sale price of petrol is Rs57.70 per litre while its ex-refinery price comes to Rs26.19 per litre. The government eats up Rs27.29 on a litre of petrol in the shape of Rs18.88 petroleum development levy, Rs7.53 as general sales tax and 0.88 paisa as excise duty. Other levies include 72 paisa per litre of inland freight equivalent margin recommended by the OCAC and has been tentatively accepted subject to the basis of actual monthly freight computation. The margin of distributors and dealers comes to Rs1.63 and Rs1.87 per litre, respectively.
NAPHTHA: Besides petrol export, four refineries -- National Refinery Limited, Pakistan Refinery Limited, Attock Refinery Limited and Bosicor -– have been in forefront in exporting around 700,000-750,000 tons of naphtha every year.
Crude oil includes 15 per cent of naphtha and it is partly used in making petrol by upgradation while the balance is exported. Japan is the main buyer of naphtha which it uses for petrochemical feed and make plastic, polythene and petrochemicals.
A refinery official said that naphtha was exported at an average price of $500 per ton in the last fiscal year.
