Oil Marketing Companies (OMCs) have announced a Rs10 per litre hike in the price of Hi-Octane Blending Component (HOBC) effective from April 1, 2024. Despite this increase, the Petroleum Levy (PL) on HOBC remains at Rs50 per litre, maintaining a lower levy compared to low-grade motor gasoline, which incurs a PL of Rs60 per litre.
The international price of petrol 95 Ron has held steady at approximately $98.96 per barrel over the last fortnight, marking a slight increase from $93.96 per barrel before March 16, 2024.
Notably, the pricing of Hi-Octane petrol in Pakistan is not regulated by the Oil and Gas Regulatory Authority (Ogra). Instead, individual OMCs responsible for importing the fuel determine its price, resulting in variations across different petrol pumps nationwide.
Following the recent review of petroleum product prices, Pakistan State Oil (PSO) has confirmed a Rs10 per litre increase in HOBC rates starting April 1, 2024. PSO’s Altron X 97 Hi-Octane is now priced at Rs305 per litre, while Attock Petroleum Company Limited (APL) has maintained Xtron Hi-Octane at Rs300 per litre since February 2024. Similarly, Shell V-Power Octane is priced at Rs300 per litre. Currently, the price gap between Hi-Octane and regular petrol ranges from Rs10 to Rs15 per litre.
OMCs estimate that HOBC consumption stands at approximately 300 metric tonnes per day, translating to a monthly consumption of 9,000 metric tonnes. This high-octane fuel is preferred by luxury and imported cars due to its benefits such as improved mileage and engine performance compared to ordinary petrol (motor gasoline).
