Month: February 2024

Russia Implements Six-Month Ban on Gasoline Exports from March 1

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Russia-Implements

In a move to stabilize domestic prices and facilitate refinery maintenance, Russia has announced a six-month prohibition on gasoline exports starting March 1. The ban, approved by Prime Minister Mikhail Mishustin and confirmed by Deputy Prime Minister Alexander Novak, aims to address surging demand from consumers and farmers while mitigating the impact of recent attacks on Russian refineries. Deputy Prime Minister Novak emphasized the necessity of stabilizing prices amidst increased demand for petroleum products. The decision, which follows a proposal from Novak, underscores the government’s commitment to ensuring stability in…

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Draft LPG Policy Advocates Deregulated Pricing and Tax Incentives

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lpg-plant

The interim government has crafted a blueprint for the LPG policy in 2024, proposing the deregulation of LPG pricing alongside a range of tax incentives. Under this draft, new LPG production would enjoy a 10-year tax holiday, while petroleum levy would be abolished, and GST reduced from 18 percent to 5 percent. In this proposed framework, the Petroleum Division’s role would be confined to policymaking, with the regulatory authority, Ogra, assuming a more robust oversight role. Additionally, an “Appellate Tribunal” is set to be established to allow stakeholders to challenge…

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Government Moves to Shield NEPRA and OGRA from Political Influence

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nepra

In Islamabad, the caretaker Federal Government has announced plans to amend the National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) Acts with the aim of insulating both regulatory bodies from governmental interference in future tariff notifications. Sources close to the caretaker Minister for Power and Petroleum revealed this significant decision, which was made at the latest meeting of the Cabinet Committee on Energy (CCoE) and subsequently ratified by the caretaker Federal Cabinet. The decision stems from a concerted effort to bolster the autonomy of NEPRA…

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Pakistan to Implement Turkish Model for DISCOs Management, Eyeing Efficiency and Investment

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power-sector

In Islamabad, Pakistan is set to emulate the successful Turkish model by outsourcing the management of its power distribution companies (DISCOs) in a bid to curtail losses, enhance efficiency, and attract investment. Following an agreement with the International Monetary Fund (IMF), Pakistan aims to engage a transaction adviser for long-term concessions by April 2024. The World Bank has offered grant-based technical assistance and risk guarantee instruments, bolstering confidence for potential private concession holders and lenders. Additionally, the International Finance Corporation has shown interest in providing transaction advisory services. Recent discussions…

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Energy Minister Credits Painful Gas Price Hikes Amidst Challenges

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Gas-Prices

In Islamabad, Outgoing caretaker Minister for Power and Petroleum, Muhammad Ali, reflected on recent “painful” gas pricing reforms as one of the administration’s significant accomplishments, despite acknowledging the hardship it brought to consumers. During his departure address, he also conceded the government’s inability to negotiate debt relief with foreign independent power producers (IPPs), particularly those from China, throughout the caretaker period. Ali emphasized the critical role of stabilizing the exchange rate in making gas and electricity affordable for consumers, particularly in the industrial sector. While the caretaker government couldn’t provide…

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