KARACHI, May 28: The Pak-Arab Refinery Limited (Parco) has, so far, exported around 60,000 tons of petrol since October 2006 and is likely to meet its current fiscal year target of 80,000 tons by the end of June.
Sources in the refinery said that the company plans to export around 140,000 tons in the next fiscal in case local consumption of petrol continues to decline owing to rapid conversion of vehicles to CNG and LPG.
However, much depends on response from the government which will take a decision in view of demand and supply position. The refinery seeks permission from the government before issuing every international tender in the media.
Parco had issued a global tender last week for 20,000 tons June-end shipments.
The government had given a go-ahead for petrol export last year after smelling that local petrol had become surplus in view of its falling sales caused by the meteoric rise in prices.
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.
Sources said this year’s actual earning from the 60,000 tons of petrol export could not be known.
However, the government had decreased the price of petrol to Rs53.70 from Rs57.70 per on Jan 16, 2007, but its sale is yet to pick up significantly.
It is unlikely that petrol consumption will get a big boost as a majority of buyers are more interested in purchasing CNG-fitted vehicles, especially 800-1,000cc cars. Those who have already converted their vehicles would hardly switch over to petrol. The maximum ex-depot sale price of petrol is Rs53.70 per litre while its ex-refinery price comes to Rs33.59 per litre.
The government eats up Rs6.19 per litre in shape of petroleum development levy, Rs 7 as general sales tax and 0.88 paisa as excise duty.
Other levies include Rs2.78 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 Rs1.52 and Rs1.74 per litre, respectively.
According to the chairman of CNG Station Owners Association (CNGSOA), Malik Khuda Bux, over 1.2 million CNG-fitted vehicles are plying roads and around 1,400 fuel stations are in operation all over the country.
An investment of Rs40bn had been made and more than Rs10bn was in the pipeline, he said.
More than 200 cars (new locally assembled, used and new imported cars) start plying roads daily in the country and 60 per cent of them are CNG-fitted vehicles.
Pakistan has emerged as CNG leader in Asia and the third largest user in the world after Argentina and Brazil, he added.
Head of Research at Jehangir Siddiqui, Mohammad Sohail, said in July-March 2006-2007 overall industry petrol sales had dropped by five per cent as compared to the same period of last fiscal despite the fact that petrol rate declined by Rsr4 per litre in mid-January this year.
“I don’t think that petrol sales will pick up as CNG is still cheaper by 50pc as compared to petrol even after a cut of Rs4 per litre.
“If petrol prices come down below Rs50 per litre, its sale can slightly improve. Besides, petrol has been facing another threat from rising consumption of LPG in auto sector.”
