The ECC approved the replacement of the benchmark actual premium cost with the average premium of cargos purchased by the Pakistan State Oil (PSO). Presently, the KPC premium for PSO’s HD cargoes for Jan-June 2022 is 2.40/bbl. In case, KPC is unable to meet PSO’s HSD demand, the same is imported from the spot market. Accordingly, the premium on HSD import might be benchmarked on PSO’s average tendered premium for the previous fortnight. In case, there was no tender by the PSO in a particular fortnight, the premium from previous tender might be used for calculating the HSD ex-refinery price.

Source: The Express Tribune March 26, 2022 22:51 UTC