The petroleum industry in Pakistan has the potential to grow substantially but the long-standing issues of excessive regulation and government-controlled fuel prices have held this industry back, which I explored in my previous column. Prices of fuels like petrol and diesel must be fully deregulated. Instead of determining prices, the government should concentrate on collecting taxes from fuel sales to…
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The Oil and Gas Regulatory Authority (OGRA)’s promotion of gas liberalisation by engaging the private sector to avail additional LNG capacity at terminal-II is constantly opposed by the Sui Northern Gas Pipeline Limited (SNGPL). Since the TPA Rules-2012 for gas code for private sector import were in suspension and revised TPA rules were not notified at that time, the matter…
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The gas crisis in Karachi persists as the Sui Sorthern Gas Pipelines Limited (SSGPL) has suspended gas supply to the general industry and captive power plants for 24 hours till 8am on Monday. It is to be noted here that gas supply to the CNG sector was already suspended since Friday 8am, and it will be restored on Monday 8am…
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Industry experts believe the government’s decision to convert three power plants from imported fuel to local coal could result in savings of $175 per tonne which would translate to over $800 million in savings annually from each plant “The government’s decision to bet on local fuel will not only reduce the country’s import bill, on which fuel imports bear the…
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The government plans to add 9,000 megawatts of solar energy to the national grid, as an alternative energy source to the costly electricity being generated using imported fuel, under an initiative that includes waiving of all import duties along with tax incentives. Earlier this month, the government announced plans to launch solar power projects of around 14,000 megawatts this year.…
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Reports of a few violent protests emerged in parts of the city against K-Electric in which staff and properties of the company were badly damaged. As a result, the power utility suffered severe losses in its offices in Korangi, Landhi, and Malir, among others. Due to severe damage caused to K-Electric’s IBCs in Landhi and Korangi in particular, both shall…
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Supply of gas to various parts of Balochistan was suspended as flooding in Bolan River washed away 12-inch gas pipeline in Bolan district on Thursday. “Incessant rains and hilly torrents have swept away alternative gas pipeline of 12 inch causing gas supply suspension to the areas including Quetta, Pishin, Mastung, and Kalat,” SSGC spokesman Salman Siddiqui said. Floods had damaged…
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Pakistan’s oil reserves shrank 7 percent to 233 million barrels in June 2022 from 249 million in the same month last year as deposits at major active fields are exhausting in the absence of any significant new discoveries. Latest industry data showed oil reserves at Mardenkhel, Adhi, Shahdadpur, Pasakhi North East, Nashpa, and Mela fields declined by 13 percent, 14…
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The Jamaat-e-Islami’s Karachi chapter on Wednesday filed a petition in the Sindh High Court (SHC) against “illegal” loadshedding, lack of power generation and collection of different taxes by K-Electric from its consumers through the electricity bills. JI Karachi chief Hafiz Naeemur Rehman and others said KE has failed to discharge its duty for providing uninterrupted electricity to the residents. They…
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Nearly half of the K-Electric consumers may not get the benefit of exemption from paying fuel adjustment charges (FAC) in their monthly electricity bills as Federal Energy Minister Khurrum Dastagir said on Wednesday that Prime Minister Shehbaz Sharif announced elimination of fuel adjustment charges in the entire country for only those who consumed up to 200 units of electricity per…
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