Jul 31 -Aug 06, 2000
Shell, Caltex cut
furnace oil price: PSO plans more imports
Two foreign oil marketing companies have reduced the furnace oil price
by four per cent and six per cent respectively on Wednesday following in the footsteps of
Pakistan State Oil (PSO), which cut the price by 14 per cent.
Shell Pakistan Limited has reduced the furnace oil price by 6.4 per
cent to Rs10,907.75 per ton from Rs11,649.50 per ton inclusive of sales tax, an official
in the company told.
An official in Caltex Pakistan said that the company has reduced the
ex-Karachi price by four per cent to Rs11,862.25 per ton from Rs12,342 per ton.
PSO on Tuesday reduced the ex-installation furnace oil prices by 14 per
cent to Rs9,778 per ton from Rs11,368.50 per ton following price fall of furnace oil in
Arabian Gulf. According to PSO, it has passed on the full benefit of downward revision to
In another development, PSO on July 27 floated a second tender for fuel
oil import after the government announcement of deregulating the oil sector from July 1.
A PSO official told that the company has issued a tender for import of
220,000 tons for September delivery. PSO has sought four cargoes of 55,000 tons each to be
delivered at Fauji Oil Terminal at Port Qasim, the official said.
The previous PSO's tender of 240,000 tons were won by Bakri Bunker of
Saudi Arabia and Petronas of Malaysia and they would supply two cargoes each early next
month. The first delivery is scheduled on August 6-8, second from August 17-19, third from
August 23-25 and the fourth from 29-31.
However, an official in Shell Pakistan said that they had no immediate
plans to import fuel oil as it currently meets its requirements from local refineries like
Pakistan Refinery Limited and National Refinery Limited.
He said we purchase fuel oil from these refineries at higher price that
is why our prices are higher from PSO.
Sugar imports to cost extra $66 million
Long delay in reducing front-loading on the import of white sugar has
not only resulted in soaring of the local prices, but is also going to cost another $66
million in foreign exchange, complained the importers on Thursday. On harvesting poor
crop, mills this year (1999-2000) produced 2.4 million tons of white sugar which fell
short by 0.6 million tons against the total domestic consumption of 3 million tons.
As early as in March this year, it had became evident to all that the
country was faced with a shortfall in sugar and would need to import a sizeable quantity
to meet its domestic demand.
Despite these developments people at the helm of affairs did not pay
due attention towards an issue which was quite sensitive in nature because every
household, whether poor or rich consumes sugar in its own capacity, a local dealer said.
Consequently, white sugar which was being quoted at around $205 per ton in March in world
market, has increased to $315 per ton giving a net rise of $110 per ton.
Rice worth $307m lying unsold
A huge quantity of exportable surplus of Irri-6 and Basmati rice with a
tag price of around $307 million in the world market are still lying unsold with millers
and some traders, exporters disclosed this on Tuesday.
Currently a balance of around two lakh tons of Irri-6 and six lakh tons
of Basmati rice at a value of $37 million and $270 million, respectively have to be
exported before the arrival of new paddy crop.
"Tough competition from Thailand and Vietnamese exporters elbow
out Pakistani rice exporters from world market despite the fact of having advantage of
proximity to markets as well as early paddy crop arrival," another exporter said.
The current procurement price of Irri-6 in the domestic market stands
at around Rs8500 per ton and after adding processing and packing costs including that of
fob the net cost comes to around $182 per ton.
Officials delaying wheat export, says envoy
Pakistan ambassador to Iran has said that his efforts to sign a deal
with Iran for export of one million tons wheat to that country have been frustrated by the
commerce ministry officials.
Sources told on Thursday that Ambassador Javaid Hussain in a letter to
the foreign secretary, Inamul Haque, has said that due to his efforts the Iranian
government had evinced keen interest in buying the surplus wheat from Pakistan and asked
for technical analysis report from Islamabad.
Mr Javaid said: "Despite my several communications with the
commerce ministry officials they have not yet sent the report to the Iranian
Stress on boosting exports
Speakers at a seminar on Thursday underlined the need for boosting
exports with an emphasis on accelerating exports of non-traditional items.
The seminar was held under the auspices of the Export Promotion Bureau
to highlight the export potential of biscuits and confectionery at its offices, says an
Speaking on the occasion, EPB Vice Chairman Masood Alam Rizvi said, the
Bureau was making efforts to diversify the exports of the country to non-traditional items
such as biscuits and confectionery to tap their export potential.
TCP gets 18 offers
The Trading Corporation of Pakistan on Wednesday received 18 offers
from foreign buyers and 27 offers from local mills for purchase of 60,000 bales of various
A senior TCP official said the Price Evaluation Committee (PEC) had
considered these offers but the approval for acceptance will be taken on Thursday when TCP
chairman will return from Islamabad.
He said the Corporation had floated one international tender for the
export of 30,000 cotton bales and local sale of 30,000 bales.
"Overwhelming response was received from foreign buyers in the
bidding as 9 merchants made 18 offers for the purchase of more than 30,000 bales", he