ISLAMABAD: For the first time in history, Pakistan government unveils planfor Oil Hedging.
Federal government on Sunday has drawn up a plan to take advantage of thefall in oil prices in the international market.
Preparations to purchase crude oil, petrol and high speed diesel have beencompleted and a summary to purchase of a certain quantity of oil at a fixedprice for a specific period has been prepared.
According to the documents, for the first time in the history of thecountry, a summary of hedging of petroleum products has been prepared andthe Petroleum Division will submit the summary to the Economic CoordinationCommittee (ECC) for approval.
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According to the summary, it is proposed to buy oil for one to two years inadvance. The summary proposed to purchase 9 percent or 1.5 crore barrels ofcrude oil, petrol and high speed diesel annually in advance.
The summary proposed to make Pakistan State Oil (PSO) a counter party forhedging of petroleum products and the Ministry of Finance will approve theperformance guarantee of the PSO.
