Author: Admin

Gas Tariff to Rise for Captive Power Plants from July 1

Admin
OGRA

ISLAMABAD: The government has decided against reducing gas prices from July 1, 2024, despite the Oil and Gas Regulatory Authority’s (OGRA) recommendation to lower them by 10% for the next fiscal year. Instead, gas prices for captive power plants (CPPs) will increase by Rs250 per mmBtu to Rs3000 per mmBtu from the current Rs2750 per mmBtu, aligning with International Monetary Fund (IMF) directives. “For all other categories, the government has opted to maintain current gas prices,” said senior Energy Ministry officials. This decision is expected to generate Rs110-115 billion in…

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Calls for Hesco Privatization Amid Outages and Corruption

Admin
power-subsidy

KARACHI: Hyderabad business leaders are demanding the outsourcing of the Hyderabad Electric Supply Company (Hesco) due to persistent electricity outages, corruption, and rising tariffs. They cite the company’s inability to provide reliable electricity to commercial and domestic consumers, causing significant disruptions and economic strain. Consumers are facing eight to ten hours of load shedding, frequent faults, and poor infrastructure, leading to low and high voltage issues, burning of transformers, and extended outages disguised as maintenance. Pseudo-detection bills to cover power theft by Hesco staff have also been reported. Muhammad Farooq…

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PSO to Fund $2 Billion Investment with Foreign Debt

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pso

KARACHI: Pakistan State Oil (PSO) has announced plans to secure foreign debt to finance a significant portion of its planned $1.5-2 billion investment in Pakistan Refinery Limited (PRL). The state-owned oil marketing company’s receivables have surged to Rs810 billion, primarily due to circular debt and late payment surcharges. During an analyst briefing on the financial accounts for the first nine months of FY24, PSO officials outlined the company’s strategy to diversify its business by establishing electric charging stations and venturing into financial and renewable energy sectors. These initiatives aim to…

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Sharp Decline in Coal Imports from Afghanistan via Torkham Border

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Torkham-Border

KHYBER: The import of coal from Afghanistan through the Torkham border has significantly decreased following the Afghan Taliban’s decision to increase taxes on coal mines and export duties. This situation has been further exacerbated by Pakistani industrialists shifting to cheaper local coal sources. Custom clearing agents in Torkham revealed that the suspension of trade through the Kharlachi border crossing in the Kurram tribal district, due to security concerns, has compounded the difficulties faced by local coal importers. The additional duties and taxes imposed by the Afghan Taliban since their rise…

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Oil Industry Rejects Budgetary Measures, Calls for Continuation of Existing Tax Regime

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oil-and-gas

ISLAMABAD: The oil industry has strongly opposed the proposed federal budget for 2024-25, claiming it undermines the recently announced policies for establishing new refineries and upgrading existing ones. The Oil Companies Advisory Council (OCAC) has urged the government to maintain the current taxation regime, including customs duties on diesel and sales tax laws on all petroleum products. In a representation to the federal ministers for finance and petroleum, the OCAC, an independent organization of refineries, oil marketing companies, and a pipeline company, expressed concerns over the budgetary measures. The council…

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