When we talk about petrol or oil, we only think about huge refineries and how profitable this industry sounds. It is the best sector to invest in if anyone is looking to invest in petroleum companies in Pakistan.
JINN Petroleum is an Oil Marketing Company in Pakistan that provides some of the best quality petroleum products. JINN Diesel, Patron 92 , and Furnace oil.
The Flashpoint of High-Speed Diesel is a minimum of 53°C for automobiles, and its knocking quality is measured in Cetane number.
Diesel fuel serves to power trains, buses, trucks, locomotives, and automobiles. It runs construction, petroleum drilling, and other off-road equipment and is the prime mover in a wide range of power generation & pumping applications.
Gasoline Fuel is highly flammable, with a lower explosive limit of 1.4%, and very volatile, with a Reid vapor pressure of 7.8-9psi. To control this rapid pressure increase within Internal Combustion Engines (ICE), gasoline is tested on a convention called RON (research octane number), varying from 90 – 97 RON. Gasoline fuel serves to power all sorts of ICE like cars, lighter trucks, motorbikes, and power generation on a small scale.
This dark viscous residual fuel is extracted by blending mainly heavier components from a crude distillation unit, short residue, and clarified oil from a fluidized catalytic cracker unit (FCCU). Furnace Oil is primarily used in power generation.
JINN Petroleum ensures its customers receive the highest quality FO by providing all products are tested in our lab situated at Sahiwal.
The fluctuation in petrol prices is a source of much debate in Pakistan. Yet, there needs to be more information surrounding how the cost is determined and what factors most influence its frequent adjustment. This article will explore the pricing data from the past few years to comment on the pricing framework, recent trends, and what consumers can expect in the coming months.
Regardless of where you are in the world, the price of petrol you pay at the filling station is an accumulation of several components, each signifying a segment of the overall oil value chain. The fuel cost must account for each industry sector, from crude oil exploration and production to refining and final product distribution. In addition, unless you live in an oil-rich country, the government will most likely implement fuel taxes as a source of revenue to meet fiscal targets or as a tool to drive energy policy.
Although the price makeup includes the factors highlighted above, the pricing framework may vary significantly from country to country. The government may completely regulate the price through subsidies or price caps or have an entirely deregulated price structure driven by the market. In Pakistan, the petroleum products price is regulated by the government, and the price is notified through the Oil and Gas Regulatory Authority (OGRA) on a monthly or fortnightly basis.
Essentially, a consumer’s final petrol price in Pakistan comprises six components.
Those six components comprise the following
- Ex-Refinery Price
- Inland Freight Equalization Margin (IFEM)
- Distributor Margin
- Dealer Commission
- Petroleum Levy
- Sales Tax.
Recognize that it will no longer be able to meet its revenue objective from petroleum products and, in exchange, give a transparent and credible plan for increasing revenue from other sources. So far, it has yet to be successful, and finding choices to cover such a vast hole in such a short period is a challenging assignment.
Secondly, the economy is still vulnerable to external shocks and has decided to dial back on its fiscal expansion goals, instead taking extra measures to assure stabilization and future sustainable growth. Given the political costs and general elections in 2023, it is improbable that the administration will choose this route. JINN Petroleum works on the welfare of the economy as well. Installing oil terminals for people to make the most of petroleum products by making them highly accessible. Follow JPPL for more details about the industry and recent trends.