Author: Admin

Industrial Gas Demand Plunges Amid Price Hike, Raising Surplus LNG and Circular Debt Concerns

Admin
Oil-and-Gas

ISLAMABAD: The Petroleum Division informed the National Assembly that gas consumption by industrial Captive Power Plants (CPPs) has sharply declined—by approximately 80% in the SNGPL network and 43% in SSGCL’s system—primarily due to increased gas tariffs and levies. This reduction, amounting to around 216 MMCFD, is expected to worsen as more CPPs transition to the national grid, raising fears of a growing surplus of re-gasified liquefied natural gas (RLNG) and further exacerbating the circular debt crisis. In a written reply to MNA Ali Muhammad, Minister of State for Petroleum Ali…

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FPCCI Condemns 18% Tax on E-Commerce and Solar Panels, Calls for Immediate Withdrawal

Admin
FPCCI-Project

KARACHI: Muhammad Amaan Paracha, Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has sharply criticized the federal budget 2025–26, saying it falls short of the expectations of trade, industry, and the general public. He denounced the imposition of 18% tax on e-commerce transactions, arguing it will suppress the potential of unemployed youth who had found income opportunities through online platforms. “This move is unjust and counterproductive,” he remarked. Paracha also strongly opposed the 18% sales tax on solar panels, warning it will drive up prices…

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Power Division Uncertain on Tariff Changes from July 1 Amid Disco Petitions

Admin
Power-sector

ISLAMABAD: The Power Division on Friday admitted it has no clear estimate of whether electricity tariffs will rise or fall from July 1, 2025, stating that any change hinges on the regulator’s approval of cost components submitted by eight power distribution companies (Discos) under the Multi-Year Tariff (MYT) regime. During a NEPRA public hearing, Additional Secretary (Power Finance) Mehfooz Bhatti explained that seven tariff scenarios have been submitted to NEPRA, but final rates will depend on approved distribution margins and government subsidies. A targeted distribution subsidy (TDS) of Rs250 billion…

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Govt to Impose Rs77/litre Petroleum Levy on Furnace Oil from July 1 under IMF Agreement

Admin
IMF-Oil

ISLAMABAD: The federal government is poised to levy a Petroleum Levy (PL) of Rs77 per litre (Rs82,077 per metric ton) on furnace oil starting July 1, 2025, as part of amendments to the Petroleum Levy Ordinance, 1961, introduced through the Finance Act 2025-26. This measure aligns with Pakistan’s commitments under the IMF’s Resilience and Sustainability Facility (RSF) programme. In addition to the PL, a Carbon Levy of Rs2.5 per litre (Rs2,665/MT) will also be imposed on furnace oil in FY2025-26, increasing to Rs5 per litre in FY2026-27. The agreement with…

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Govt May Miss Rs1.16tr Petroleum Levy Target Amid Oil Price Surge Following Israel-Iran Conflict

Admin
oil and gas

ISLAMABAD: The federal government is likely to miss its revised petroleum levy (PL) target of Rs1,161 billion for FY2024-25, as surging global oil prices — triggered by Israel’s recent attacks on Iran — drive up local fuel costs and dampen consumption. Following the attacks, international petrol prices climbed by \$1.98 per barrel to \$73.79, while high-speed diesel (HSD) rose by \$2.54 per barrel to \$78.68. This could translate into a domestic hike of Rs4.38 per litre for petrol and Rs5.02 for HSD from June 16, 2025. Petrol and HSD costs…

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