Pkrevenue.com

Category: Energy

You can go through stories related to energy. The stories are about changes in petroleum prices and updates on energy sector of Pakistan and world.

  • New government keeps petroleum prices unchanged

    New government keeps petroleum prices unchanged

    ISLAMABAD: The new government – formed by leading political parties – on Friday decided to keep the prices of petroleum products unchanged for next fortnight.

    The previous PTI government had decided to freeze the price of petrol at Rs150 per liter till June 30, 2022.

    Prime Minister Muhammad Shehbaz Sharif has rejected the Oil and Gas Regulatory Authority’s (OGRA) proposal to hike prices of petroleum products in the country.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    It was announced by the Prime Minister while addressing an Iftar Dinner at Prime Minister House in Islamabad on Friday tonight.

    The previous government on February 28, 2022 decided to reduce the prices of petroleum products despite the high international oil prices in the wake of Russia-Ukraine war.

    The finance division had issued the notification to cut the prices of petrol and diesel by Rs10 per liter each from March 01, 2022.

    READ MORE: Pakistan raises petrol price to record high at Rs160/liter

    According to a statement issued by the finance division, the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

    The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

    READ MORE; Petroleum prices kept unchanged for next fortnight

    In the fortnightly review on February 28, 2022, the Oil and Gas Regulatory Authority (OGRA) recommended Rs10 per liter increase in the prices of petroleum products.

    According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

    The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

    The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

    The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

    Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    While retaining the prices at current level, Shahbaz Sharif said the government will bear burden of increase in prices of petroleum products itself instead of shifting it to the masses.

    He said that the Prime Minister Office will now be working as Pakistan House where officers from across the country will serve.

    The prime minister said consultation is underway over formation of federal cabinet and it will soon be fianlized.

  • Meezan Bank leads Rs1 bn finance for solar project

    Meezan Bank leads Rs1 bn finance for solar project

    KARACHI: Meezan Bank, Pakistan’s leading Islamic bank and Burj Solar Energy Private Limited (BSEPL) are pleased to announce the financial close of Rs1 billion syndicated Islamic finance facility for BSEPL’s portfolio of renewable distributed power generation in Pakistan.

    The first tranche of PKR 580 million will be used to finance the construction of 7 MW solar power plant for Power Cement Limited on Karachi Hyderabad Motorway. Meezan Bank led the transaction as the Mandated Lead Arranger and Pakistan Kuwait Investment Company (Private) Limited participated as the Co-Arranger. The transaction structure is based on State Bank of Pakistan’s Islamic Financing Facility for Renewable Energy (IFRE) and a commercial facility.

    READ MORE: Meezan Bank, SNGPL sign deal for digital bill collection

    The solar power plant will be rented to Power Cement Limited under a twenty-year equipment rental agreement and the solar energy generated will be used by the company’s cement plant in Nooriabad. It will generate 220 GWh solar units for twenty years and in addition to reducing cost of electricity, will offset 112,000 tons of CO2 GHG emissions. The project is expected to start generation in July, 2022.Legal counsel for the financiers were Mohsin Tayebaly & Co. while Kabraji & Talibuddin Advocates and Legal Counsels acted as BSEPL’s legal counsel. Orient Energy Systems (Private) Limited is the turnkey EPC contractor for the project.

    READ MORE: Meezan Bank provides bill discounting facility for Huawei

    Ariful Islam, Deputy CEO, Meezan Bank, while commenting on theoccasion said, “Meezan Bank is committed to actively support and pursue green energy initiatives. Meezan has played a key role the financing of several renewable energy projects aggregating to 380 MW, as Lead or Co-lead manager and also participated in the debt syndications of two large hydro-electric projects being set-up by the Government of Pakistan – Neelum Jhelum and Dasu.

    “Burj Energy is an excellent initiative that will facilitate distributed affordable solar initiatives corporates, small and medium enterprises as well as the individual consumers.”

    He said the Meezan has also implemented a number of green initiatives by installing solar at 59 branches and 140Kw solar at its Head Office. Its new regional office building in Islamabad is also being designed to be Platinum Lead certified.

    READ MORE: Meezan Bank lends Rs1 billion under youth scheme

    Saad Zaman, Chairman of BSEPL and Burj Energy International Management Limited UAE, said, “I am very pleased that we have successfully reached the financial close of the 7 MW solar farm for Power Cement Limited. This is one more success for our company and a significant moment for development of hybrid renewable energy projects in Pakistan. This successful financial close reflects the ongoing interest and trust of leading financial institutions in the Pakistani renewables’ market and Burj Group.”

    READ MORE: Meezan Bank announces 26% growth in annual profit

    Kashif Habib Chief Executive Officer Power Cement Limited, said: ‘Our future is dependent on green, sustainable and renewable source of energy. By installing this 7 MW solar farm, we are taking the first step towards our hybrid solar& wind energy project. We shall keep playing our part in making our production process more environment-friendly and positively impactful for the eco-system we live in. It is high time that we look towards other viable energy options that are clean and green.

  • Meezan Bank, SNGPL sign deal for digital bill collection

    Meezan Bank, SNGPL sign deal for digital bill collection

    KARACHI: Meezan Bank has recently signed an agreement with Sui Northern Gas Pipelines Limited (SNGPL) to enable digitalization of consumer bill collection via the Bank’s state-of-the-art Transaction Banking Solution (eBiz+).

    READ MORE: Meezan Bank provides bill discounting facility for Huawei

    The agreement was signed by Irfan Siddiqui – Founding President & CEO, Meezan Bank and Ali J. Hamdani – Managing Director and CEO, SNGPL in the presence of other key management members including Ariful Islam – Deputy CEO, Abdullah Ahmed – Group Head Corporate and Institutional Banking, M. Saqib Ashraf – Head Transaction Banking and M. Munir – Head Payments and Cash Management from Meezan Bank, and Faisal Iqbal – Chief Financial Officer, SNGPL.

    READ MORE: Meezan Bank lends Rs1 billion under youth scheme

    As per the agreement, Meezan Bank will provide transaction banking services (eBiz+) to SNGPL enabling payment of gas bills by the residents of Punjab, Khyber Pakhtunkhwa (KPK) and Azad Jammu & Kashmir (AJ&K) via e-channels and branch banking avenues offered by the Bank.

    READ MORE: Meezan Bank announces 26% growth in annual profit

    On this occasion, Ali J. Hamdani shared SNGPL’s ambition to become a leader in sourcing energy across Pakistan while providing ease of access to its consumers via eBiz+ collection services.

    Irfan Siddiqui, also commented on the occasion, said: “The agreement between Meezan Bank and SNGPL will not only strengthen the Bank’s transaction banking portfolio but will also improve the bill collection process by making it more accessible to millions. SNGPL is already a trusted corporate client for the Bank and this agreement further strengthens our relationship.”

    READ MORE: Meezan Bank, Suzuki Motors sign MoU for car financing

  • Lucky Cement installs 34MW solar power project

    Lucky Cement installs 34MW solar power project

    KARACHI: Lucky Cement Limited and Reon Energy on Thursday announced a 34 MW captive solar power project with a 5.589 MWh Reflex energy storage.

    •The project was announced in partnership with Reon Energy Pakistan’s leading Solar and Storage Solutions Specialist

    •The project is set to be installed at Lucky Cement’s Pezu plant in Khyber Pakhtunkhwa.

    •The project will cut around 29,569 Tonnes of CO2 equivalent emissions annually.

    The project set to be installed at Lucky Cement’s Pezu plant in Khyber Pakhtunkhwa will hold not only Pakistan’s largest on-site captive solar plant but also the largest ever energy storage solution.

    READ MORE: Lucky Cement announces Rs17.15 billion earnings for first half

    The 34MW solar PV project is expected to produce approximately 48 GWh (Gigawatt hours) annually. The output energy will be used on-site resulting in substantial savings for the company in cost of energy and will also cut around 29,569 Tonnes of CO2 equivalent emissions annually.

    Speaking about the project, Noman Hasan, Executive Director, Lucky Cement Limited: “The company has always ensured to introduce and adopt the latest technologies in line with its vision of promoting sustainable business practices.

    “This advancement will not only enhance our plant’s efficiency but will also support in curtailing Carbon emissions.”

    READ MORE: Lucky Cement wins corporate excellence award

    Considering the global environmental challenges, it is important to invest in such technologies, especially on the industrial level. Being an industry leader we understand our responsibility towards the environment and through such investments, we are committed to ensuring a sustainable future, he added.

    Lucky Cement Limited becomes the third such company in Pakistan to install Reflex energy storage. This will improve the reliability of the power system by absorbing the variations of the Solar Plant and improve the overall generation efficiency by shutting down 20 MW of fossil fuel generation during the daytime whilst keeping the critical spinning reserve intact. Furthermore, storage will build flexibility into the cement plant’s power system, and allow quick response in case of any power faults enabling 24/7 operations.

    Lucky Cement Limited’s contribution to conservation falls into two categories: the efforts of the Company to preserve and enrich the environment in and around its areas of operation, and the philanthropic thrust of the Company, which supports society with the management of natural resources, community development, and livelihoods.

    The company has extensively invested in implementing projects that reduce energy consumption and address issues of environmental degradation. These projects not only bring production efficiencies but have significantly reduced carbon emissions.

  • Domestic oil sales grow by 14% in 8MFY22

    Domestic oil sales grow by 14% in 8MFY22

    KARACHI: The domestic sales of petroleum products has increased by 14 per cent to 14.44 million tons during 8MFY22 – first eight months (July – February) 2021/2022.

    The total consumption during the same period of the last fiscal year was 12.67 million tons.

    READ MORE: Domestic oil sales surge by 18% in 5MFY22

    Total Petroleum sales settled at 1.54 million tons in February 2022, showing an increase of 10 per cent YoY.

    Analysts at Topline Securities attributed the increase to: healthy growth in auto sales leading to higher demand of petrol; higher reliance on furnace oil based power plants; better agricultural yields resulting in higher sales of high speed diesel; and improvement in economic activity.

    READ MORE: Pakistan’s car sales surge 61% in 7MFY22

    Hence, petrol reported a growth of 4 per cent YoY arriving at 0.65 million tons in February 2022. Similarly, High Speed Diesel (HSD) volumes witnessed an increase of 8 per cent YoY clocking-in at 0.59 million in February 2022.

    Whereas, Furnace Oil (FO) sales volumes climbed up by 28 per cent YoY in February 2022, reaching 0.22 million tons.

    READ MORE: Pakistan cuts petroleum prices amid Russia-Ukraine War

    However, petroleum offtake shrunk by 15 per cent MoM, amid i) fewer working days in February versus January, ii) lower FO based power generation, and iii) higher MS and HSD prices compared to last year.

    As a result, MS, HSD and FO volumes depicted a dip of 12 per cent, 20 per cent and 13 per cent MoM, respectively.

    READ MORE: PM Imran reduces, freezes POL prices

  • Sales tax exempted on all petroleum products

    Sales tax exempted on all petroleum products

    ISLAMABAD: The government on Tuesday granted sales tax holiday on supply of all petroleum products to bring down the impact of high prices.

    In order to implement sales tax exemption on all the petroleum products, the Federal Board of Revenue (FBR) issued SRO 321(I)/2022.

    As per the SRO the sales tax has brought to zero per cent on petroleum products, including petrol, high speed diesel, kerosene and light diesel oil.

    The FBR previously issued SRO 183(I)/2022 on February 10, 2022 to notify reduction the sales tax rates on petroleum products. According to this notification, the light diesel oil was cut to zero per cent sales tax. The sales tax rates on other petroleum products were: 0.79 per cent on petrol; 3.17 per cent on high speed diesel; and 5.3 per cent on kerosene.

    READ MORE; FBR announces sharp cut in sales tax on POL products

    A day earlier, Prime Minister Imran Khan announced major relief by reducing prices of petroleum products and cut in electricity tariff. The prime minister also announced to keep the prices unchanged till upcoming budget. The prices of petrol and diesel have been slashed by Rs10 per liter on both the products.

    The latest move to bring the sales tax at zero per cent on supply of petroleum products is also connected to the announcement. By reducing the sales tax the government has absorbed impact of high oil prices and prevent passing the high prices to the masses.

    READ MORE: FBR slashes sales tax rates on petrol, HSD

    A statement issued by the Finance Division a day earlier stated that the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

    The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

  • Pakistan cuts petroleum prices amid Russia-Ukraine War

    Pakistan cuts petroleum prices amid Russia-Ukraine War

    ISLAMABAD: Pakistan on Monday decided to reduce the prices of petroleum products despite the high international oil prices in the wake of Russia-Ukraine war.

    The finance division issued the notification to cut the prices of petrol and diesel by Rs10 per liter each from March 01, 2022.

    READ MORE: Pakistan raises petrol price to record high at Rs160/liter

    According to a statement issued by the finance division, the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

    The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

    READ MORE; Petroleum prices kept unchanged for next fortnight

    In the fortnightly review on February 28, 2022, the Oil and Gas Regulatory Authority (OGRA) recommended Rs10 per liter increase in the prices of petroleum products.

    “The prime minister has not only rejected the increase but also announced to decrease the prices of petroleum products by Rs10 per liter in his address to the nation in order to provide maximum relief to the consumers, despite the limited fiscal space,” it added.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

    The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

    The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

    READ MORE: Prices of all POL products increased to wish New Year

    The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

    Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

  • PPL announces Rs31.14 billion half year profit

    PPL announces Rs31.14 billion half year profit

    KARACHI: Pakistan Petroleum Limited (PPL) on Friday announced financial results for the half year ended December 31, 2021. The company announced Rs31.14 billion as net profit for the half year.

    The net profit of the company grew by over 19 per cent when compared with Rs26.11 billion in the same half of the last year.

    Pakistan Petroleum Limited is a Pakistani state-owned petroleum company. The company announced earnings per share at Rs11.44 for the half year ended December 31, 2021 as compared with Rs9.59 in the same period of the last year.

    READ MORE: PPL gets license for large scale mining of Lead, Zinc

    The board of directors of the company at its meeting held on February 25, 2022 approved the financial statements for the half year ended December 31, 2021.

    The board of directors approved an interim cash dividend for the year ending June 30, 2022 of Rs1.50 per share on ordinary shares and Rs1.5 per share on convertible preference shares. The dividend will be distributed to those members whose names appear in the register of members of the company as at the close of business on March 10, 2022.

    READ MORE: PPL posts 18% net profit growth in first quarter

    According to the financial results, the revenue of the company increased to Rs90.42 billion for the half year ended December 31, 2021 as compared with Rs75.81 billion in the same half of the preceding year.

    Operating expenses of the company eased to Rs19.96 billion when compared with Rs22.18 billion.

    Exploration expenses during the half ended December 31, 2021 increased sharply to Rs9.04 billion as compared with Rs3.27 billion in the same half of the last year.

  • Sindh High Court stops tax recovery against SSGC

    Sindh High Court stops tax recovery against SSGC

    KARACHI: Sindh High Court has suspended tax recovery notices issued against Sui Southern Gas Company Limited, according to a communication sent to the Pakistan Stock Exchange (PSX) on Friday.

    The gas utility clarified reports regarding action of the Large Taxpayers Office (LTO) Karachi for making recovery by attachment of bank accounts.

    READ MORE: FBR freezes SSGC’s bank accounts for tax recovery

    SSGC said that LTO Karachi had issued notice of recovery of sales tax to banks regarding SSGC without following the legal process and waiting for decision of an independent forum i.e. Appellate Tribunal.

    “Demand was raised on irrational and unreasonable grounds of treating swapping of indigenous gas against RLNG to SNGPL as sales income,” the gas utility said.

    It said that against the said recovery notice, SSGC filed constitutional petition before Sindh High Court and the SHC suspended the recovery notice of LTO Karachi through an Order dated February 23, 2022 being devoid of legal merits and directed SSGC to pursue matter before the Appellate Tribunal.

    The LTO Karachi on February 23, 2021 issued a press release stating that it had frozen bank accounts of SSGC due to its default of sales tax amount to the tune of Rs23 billion. The default amount of sales tax was also confirmed by the Commissioner Inland Revenue (Appeals).

    The SSGC in its latest communication said that the LTO Karachi had withdrawn such recovery notices.

    The LTO Karachi in an official note dated February 24, 2022 sent to banks stated: “… for the recovery of sales tax outstanding demand of Rs23.65 billion through bank attachment issued/served in respect of M/s. Suit Southern Gas Company Limited is hereby withdrawn with immediate effect.”

  • OGDCL declares over 63% net profit for 1HFY22

    OGDCL declares over 63% net profit for 1HFY22

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Wednesday announced financial results for the half year ended December 31, 2021.

    The company announced over 63 per cent growth in net profit to Rs69 billion for the first half (July – December) 2021/2022 as compared with Rs42.22 billion in the corresponding period of the last fiscal year.

    READ MORE: OGDCL declares Rs33.63 billion net profit in first quarter

    The company announced earnings per share (EPS) at Rs16.02 for the half year ended December 31, 2021 as compared with Rs9.82 announced in the corresponding half of the last year.

    The board of directors of the company in their meeting held on February 23, 2022 approved an interim cash dividend for the quarter ended December 31, 2021 at Rs2 per share i.e. 20 per cent. This is in addition to interim dividend already paid at Rs1.75 per shre i.e. 17.50 per cent.

    READ MORE: OGDCL discovers huge gas deposits in Balochistan

    According to the financial results, the sales of the company registered a massive increase to Rs151.16 billion for the first half of the fiscal year 2021/2022 as compared with Rs110.97 billion in the corresponding half of the last fiscal year.

    Operating expenses of the company were flat at Rs34.37 billion in July – December 2021/2022 as compared with Rs33.3 billion in the same period of the last fiscal year.

    READ MORE: OGDCL announces gas discovery in KPK

    OGDCL paid an amount of Rs17 billion as royalty during the first half of the current fiscal year as compared with Rs12.9 billion in the corresponding half of the last fiscal year.