Pakistan State Oil (PSO) is leading the Euro5 race in the country. In a notification, the company announced that it would start selling this upgraded fuel very soon.
The company said that PSO continues to revolutionize fuels in Pakistan by introducing Euro5 fuel which will:
- Improve engine performance
- Reduce vehicle emission and
- Create a cleaner environment for future generations
Earlier, media reports stated that Euro5 will come in market for consumers from August 1, 2020.
Euro5 and Decrease in Hi-Octane Price:
Meanwhile, in the past few days, the prices of Hi-Octane in Pakistan have seen a sharp decrease. Usually, the price of Hi-Octane stays around Rs150 across the country. However, the current prices at petrol pumps of different Oil Marketing Companies (OMCs) are as follows:
- PSO: Rs105
- Total: Rs125
- Shell: 126
It is pertinent to mention that the prices remained the same even during petrol shortage in Pakistan last month. Despite the crisis, OMCs sold Hi-Octane at their own set rates.
Here, we want to tell our readers that the reason for high prices is that all OMCs set the price of their Hi-Octane, there is no involvement of government in it.
Euro5 and Price Competition:
Our sources said that PSO has reduced the price of Hi-Octane to create space and liquidate the stocks, before the arrival of Euro5 in Pakistan. According to our sources, the rest of the OMCs were forced to reduce prices after PSO took this step. “The companies like Shell and Total cannot keep the prices high after PSO reduced them sharply,” our sources said, adding that Total followed PSO and decreased the price.
However, the sources said that there is not a big market for Hi-Octane in Pakistan because of the price difference from regular petrol. They said that regular petrol sale is around 400-500 million liters-per-month in Pakistan, while in comparison Hi-Octane sold only 10-12 million liters per month.
“After price reduction by PSO, the customer automatically went there, so the rest of OMCs had to take the step to stay in the game,” the sources said.
Why So Silent?
An interesting aspect of this whole scenario is that all the companies took this step very silently. There is not much advertisement on digital or print media.
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