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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 petroleum prices in Pakistan from August 16, 2022

    New petroleum prices in Pakistan from August 16, 2022

    ISLAMABAD: Pakistan has revised prices of petroleum products on Monday with effect from August 16, 2022. The finance division issued following new prices that will implement from August 16, 2022:

    The price of petrol has been increased by Rs6.72 per liter to Rs233.91 from Rs227.19.

    The rate of high speed diesel (HSD) has been nominally reduced by 51 paisas to Rs244.44 from Rs244.95.

    The price of kerosene oil has been decreased by Rs1.67 to Rs199.40 from Rs201.07.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    The rate of light diesel oil (LDO) has been nominally enhanced by 43 paisas to Rs191.75 from Rs191.32.

    A press release issued by the finance division stated that in the wake of fluctuations in petroleum prices in the international market and exchange rate variation, the government had decided to revise the existing prices of petroleum products to pass on the impact to the consumers.

    It is important to note that the government revised the prices in the wake of falling international oil prices and massive recovery in rupee value.

    It was believed that the government would reduce the prices of petroleum products considering the latest crude oil prices in the international markets and sharp recovery in local currency against the US dollar.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    Some good developments have been seen since the last amendment in prices of petroleum products.

    The rupee continued the gain for the seventh straight session after falling to historic low. The local unit witnessed record low at Rs239.94 against the dollar on July 28, 2022. However, since then the rupee is continuously gaining to the dollar. The local currency gained about Rs18.75 or 7.51 per cent during the past seven trading days till August 10, 2022.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    The benchmark Brent crude is below $100 dollars in the international market. Brent crude futures were at $97.40 per barrel in New York trade on August 10, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    READ MORE: New petroleum prices in Pakistan from June 16, 2022

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

  • Pakistan to review petroleum prices amid rupee appreciation, falling global oil

    Pakistan to review petroleum prices amid rupee appreciation, falling global oil

    KARACHI: Pakistan to review the existing prices of petroleum products on August 15, 2022 for next fortnight amid falling international oil prices and massive recovery in rupee value.

    The government may reduce the prices of petroleum products considering the latest crude oil prices in the international markets and sharp recovery in local currency against the US dollar.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    Previously, the government reviewed the prices of petroleum products on July 31, 2022. As per the notification issued by the finance ministry, the government revised the following prices effective from August 01, 2022:

    The prices of petrol have decreased by Rs3.05 per liter to Rs227.19 from Rs230.24.

    The rate of high speed diesel has been increased by Rs8.95 per liter to Rs244.95 from Rs236.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    The rate of kerosene oil has been increased by Rs4.62 per liter to Rs201.07 from Rs196.45.

    Similarly, the rate of light speed diesel has been decreased by 12 paisas per liter to Rs191.32 from Rs191.44.

    Some good developments have been seen since the last amendment in prices of petroleum products.

    The rupee continued the gain for the seventh straight session after falling to historic low. The local unit witnessed record low at Rs239.94 against the dollar on July 28, 2022. However, since then the rupee is continuously gaining to the dollar. The local currency gained about Rs18.75 or 7.51 per cent during the past seven trading days till August 10, 2022.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    READ MORE: New petroleum prices in Pakistan from June 16, 2022

    The benchmark Brent crude is below $100 dollars in the international market. Brent crude futures were at $97.40 per barrel in New York trade on August 10, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    READ MORE: ECC approves petroleum dealer margin at Rs7/liter

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

  • Mari Petroleum declares Rs33 billion as annual profit for FY22

    Mari Petroleum declares Rs33 billion as annual profit for FY22

    KARACHI: Mari Petroleum Company Limited (MPCL) on Thursday declared over Rs33 billion after tax profit for the fiscal year 2021/2022.

    According to annual financial results submitted to the Pakistan Stock Exchange (PSX), the net profit of the company increased by 5.15 per cent when compared with Rs31.44 billion in the preceding fiscal year.

    The company announced earnings per share (EPS) at Rs247.84 for the year ended June 30, 2022 as compared with EPS Rs235.71 in the previous year.

    READ MORE: Engro, Excelerate Energy ink MoU to market RLNG in Pakistan

    The board of directors of Mari Petroleum Company Limited was held on Thursday August 4, 2022, which recommended a final cash dividend for the year ended June 30, 2022 at Rs62 per share at 62 per cent. This is in addition to the interim dividend already paid at Rs62 i.e. 62 per cent.

    The final cash dividend (including interim) will bring the total cash dividend to 50 per cent of the net profits of the company.

    The overview of the financial results revealed that the company’s natural gas production increased by five per cent, while crude oil and condensate production remained steady, which translated into the highest-ever total production of 36.91 MMBOE. “This equates to a net daily average production of 101,109 boepd, which is above the 100,000 boepd mark for the very first time,” the company said.

    READ MORE: Pakistan high petroleum prices massively cut oil sales in July

    The company further said that the enhancement in production, greater financial discipline and better prices drove the company’s profit before tax to the highest ever Rs52.1 billion, which is 19 per cent higher from the last year’s results.

    The tax charge for the year is Rs19.1 billion, which includes the provision for super tax of Rs5.2 billion, which has resulted in increased effective tax rate of 36.7 per cent in the fiscal year under review as compared with 28.4 per cent in the last fiscal year.

    The company said that the above dividend will be paid to those shareholders whose names will appear on the register of members at the close of business on September 21, 2022.

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

    According to the financial results the gross sales of the company massively increased to Rs108.97 billion for the year ended June 30, 2022 as compared with Rs82.69 billion in the preceding year. The payment impact of general sales tax and federal excise duty was Rs13.84 billion in the year ended June 30, 2022 as compared with Rs9.67 billion in the preceding year.

    This brings the net sales of the company at Rs95.13 billion as compared with Rs73.02 billion. The company paid an amount Rs12 billion as royalty during the fiscal year 2021/2022 as compared with Rs9.31 billion in the preceding fiscal year.

    Operating expenses of the company grew to Rs17.40 billion during the year ended June 30, 2022 as compared with Rs15.04 billion in the preceding year.

    Meanwhile, the expenses on exploration and prospecting expenditure recorded massive growth to Rs10.93 billion during the fiscal year 2021/2022 as against Rs4.54 billion in the preceding fiscal year.

  • Engro, Excelerate Energy ink MoU to market RLNG in Pakistan

    Engro, Excelerate Energy ink MoU to market RLNG in Pakistan

    KARACHI: Engro Eximp FZE, a subsidiary of Engro Corporation, on Wednesday announced that it entered into a Memorandum of Understanding (MOU) with Excelerate Energy, Inc. (NYSE: EE) (Excelerate), a leading provider of flexible LNG infrastructure solutions around the world, related to the development of a private sector gas marketing business in Pakistan.

    Under this MOU, both partners will jointly evaluate the possibility of establishing a regasified LNG (RLNG) marketing business with maximum participation from the country’s private sector.

    READ MORE: Engro Polymer collaborates for industry-academia linkage program  

    This initiative has the potential to increase private company participation in Pakistan’s LNG sector and enhance Pakistan’s energy security by opening up new RLNG supply avenues for businesses and consumers. This endeavor comes at a point when the need for energy security has become a critical issue globally, and particularly for Pakistan, against the backdrop of current geopolitical dynamics.

    Ghias Khan, President and CEO – Engro Corporation stated, “I am delighted that Engro’s collaboration with Excelerate Energy has been strengthened through this agreement, which will help Pakistan meet its energy needs. As a pioneer in Pakistan’s LNG sector, we understand the importance of enhancing energy security; an imperative for Pakistan to ensure economic growth while providing consumers access to adequate, reliable, and affordable supplies of energy.”

    READ MORE: Engro, BOP make arrangements for agri financing

    “We value our collaboration with Engro and take great pride in having partnered with them to build Pakistan’s first LNG import terminal in 2015,” said Mr. Steven Kobos, President & Chief Executive Officer of Excelerate. “This agreement builds on the momentum we have established by extending our reach downstream of our existing terminal to key regasified LNG markets in Pakistan. We remain committed to meeting Pakistan’s growing energy security needs and look forward to expanding our collaboration with Engro in this pivotal market.”

    READ MORE: Engro Powergen approves revised IPPs-government MoU

    Since 2015, Engro and Excelerate together have played a key role in strengthening energy security of Pakistan through continuous operations of Pakistan’s first LNG import terminal which utilizes a floating storage and regasification unit provided under a long-term charter by Excelerate. The terminal currently fulfills as much as 15 percent of Pakistan’s natural gas requirements and is recognized as the most utilized FSRU worldwide.

    READ MORE: Engro Polymer plans to setup Circular Plastics Institute

  • Pakistan high petroleum prices massively cut oil sales in July

    Pakistan high petroleum prices massively cut oil sales in July

    KARACHI: A big jump in petroleum prices in Pakistan has reduced the domestic sales of oil for the month of July 2022.

    According to details released on Tuesday Pakistan oil sales commenced the fiscal year 2022/2023 with a decline of 26 per cent MoM to clock in at 1.44 million tons in July 2022 (lowest since February 2021).

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    Analysts at Topline Securities attributed the sharp decline in domestic oil sales to significant decline in all 3 petroleum products: High Speed Diesel (HSD) sales reduced by 38 per cent MoM to 444, 000 tons, Motor Gasoline (MOGAS) sales declined by 15 per cent MoM to 594,000 tons and Furnace Oil (FO) sales dipped by 23 per cent MoM to 350,000 tons.

    Major reasons behind the decline in oil sales are, (i) Eid holidays during the first half of July where inter provincial transportation activity subsided which led to low HSD sales, and (ii) monsoon season across the country resulted in lower traffic on the roads.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    Furthermore, increase in MOGAS and HSD prices by 26 per cent and 41 per cent since Jun-22 resulted in reduced demand of petroleum products and increase in usage of public transport and car pooling.

    As compared to last year, Pakistan oil sales recorded 26 per cent YoY decline in July 2022 which is owed to drop in MOGAS and HSD Sales by 27 per cent YoY and 38 per cent YoY, respectively. Excluding FO, oil sales were down 31 per cent YoY and 26 per cent MoM in July 2022 to 1.1 million tons.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Among the listed entities, Pakistan State Oil (PSO) sales posted 27 per cent MoM decline to 760k tons (lowest since Feb-22), mainly due to decline in HSD sales by 38 per cent MoM. In terms of market share, PSO market share clocked in at 53 per cent in Jul-22 vs. 52 per cent in July 2021.

    Other companies such as Attock Petroleum (APL) and Shell Pakistan (SHEL) also recorded drop of 29 per cent MoM and 37 per cent MoM to 142k tons and 100k tons, respectively.

    For FY23E, the analysts expect oil sales to drop by 15-20 per cent YoY in FY23E, mainly due to (i) low growth estimated in agriculture sector, (ii) likely decline in auto sales, and (iii) increase in petroleum prices.

    READ MORE: New petroleum prices in Pakistan from June 16, 2022

  • Pakistan State Oil gets Rs30 billion to avoid default

    Pakistan State Oil gets Rs30 billion to avoid default

    ISLAMABAD: An amount of Rs30 billion has been approved for Pakistan State Oil (PSO) to avoid payment default.

    The approval has been given at a meeting of Economic Coordination Committee (ECC), which was held in Islamabad on Sunday with Minister for Finance and Revenue Miftah Ismail in the chair.

    READ MORE: PSO posts massive growth of 245% in six months

    For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of pervious government and approved an amount of Rs30 billion rupees as supplementary grant for PSO receivables.

    It was also decided in the meeting that Power Division will make immediate payments of the current outstanding amounts of Rs20 billion by tomorrow [August 01, 2022] and Rs12.8 billion by August 04, 2022.

    READ MORE: Pakistan decides to lift ban on imported goods

    The ECC also directed Finance Division and FBR to submit proposal for generation of Rs30 billion through taxes within a week.

    On another summary of Petroleum Division on price mechanism of petroleum products, the ECC accepted the proposal to use the average of exchange rate for the relevant period rather than the exchange rate of the last day for the current as well as future price determinations.

    READ MORE: ECC approves petroleum dealer margin at Rs7/liter

    The ECC directed Petroleum Division to work out options in consultation with OGRA for setting up petroleum product prices within a week.

    The ECC directed the Petroleum Division to submit a proposal within a week to regulate the prices of Kerosene Oil and Light Diesel Oil after consultation with relevant stakeholders.

    READ MORE: Pakistan allows release of banned items stuck up at ports

  • New petroleum prices in Pakistan from August 1, 2022

    New petroleum prices in Pakistan from August 1, 2022

    KARACHI: Pakistan on Sunday revised the prices of petroleum products effective from August 01, 2022.

    Ministry of Finance announced the following rates effective from August 01, 2022:

    The new prices of petrol have been decreased by Rs3.05 per liter to Rs227.19 from Rs230.24.

    The rate of high speed diesel has been increased by Rs8.95 per liter to Rs244.95 from Rs236.

    The rate of kerosene oil has been increased by Rs4.62 per liter to Rs201.07 from Rs196.45.

    Similarly, the rate of light speed diesel has been decreased by 12 paisas per liter to Rs191.32 from Rs191.44.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    Previously the present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel and now as of July 29, 2022, the international prices of Brent Oil have fallen to $110 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15, 2022. However experts believed it was political decision as the government had to increase petroleum levy and apply sales tax.

    Furthermore the Pakistani Rupee (PKR) has sharply fell against the dollar leaving no room for the government but to increase the prices of petroleum products.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022.

    Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    READ MORE: New petroleum prices in Pakistan from June 16, 2022

    The new government of Prime Minister Shehbaz Sharif increased the prices of petroleum products on May 26, 2022, June 02, 2022 and June 15, 2022. Cumulatively, the government increased the price of petrol by 84 per liter in these price hikes.

    The present government in the budget estimated to collect Rs750 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    READ MORE: New petroleum prices in Pakistan from June 03, 2022

  • ECC approves petroleum dealer margin at Rs7/liter

    ECC approves petroleum dealer margin at Rs7/liter

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved to fix petroleum dealers margin at Rs7 per liter for petrol and high speed diesel.

    The decision has been taken at a meeting of the ECC presided over by Finance Minister Miftah Ismail on Thursday.

    The Petroleum Division submitted a summary on revision of Oil Marketing Companies (OMCs) and dealers margins on petroleum products.

    READ MORE: Pakistan allows release of banned items stuck up at ports

    It was informed that the existing margins were fixed in December, 2021 and Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries and utility bills, etc.

    Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Planning, Development and Special Initiatives Prof. Ahsan Iqbal, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Power , Khurram Dastgir Khan, Federal Minister for National Food Security and Research Chaudhary Tariq Bashir Cheema, Shahid Khaqan Abbasi – MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Rana Ihsan Afzal, Coordinator to the PM on Commerce and Industry, Coordinator to the PM on Economy, Bial Azhar Kayani, Federal Secretaries and senior officers attended the meeting.

    READ MORE: SBP makes permission mandatory for motor car import

    Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of 4th International Wheat Tender 2022 opened on 25th July, 2022.

    It was informed that Trading Corporation of Pakistan (TCP) issued 4th tender on 19-05-2022 for securing quantity of 200,000 MT of imported wheat on CFR basis.

    The tender was opened on 25-07-2022 wherein six (06) international suppliers participated, out of which 05 offered rates. The ECC after detailed discussion approved the lowest bid offered by M/s Falconbridge FZLLC@ US$ 407.49/MT CFR bulk on sight LC basis with direction to TCP to negotiate with the Russian authorities to procure wheat on lower rate subject to confirmation of the ECC.

    Ministry of Water Resources submitted a summary on compensation package for the Chinese causalities at Dasu Hydro Power project.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    The ECC decided that the amount of compensation/ good will package will remain the same as per ECC’s earlier decision dated January 21,2022 ( i.e US$ 11.6 million) and approved disbursement of the compensation/goodwill amount directly to the company M/s China Gezhouba Group International Engineering Co. Ltd (CGGC) through Ministry of Foreign Affairs.

    The Ministry of Industries and Production submitted a summary on issues faced by Fatima Fertilizer (Sheikhupura Plant) and Agritech.

    Both the SNGPL based plants are operated by provisioning of RLNG on cost sharing basis. Gas rate for operation of these plants is worked out on the basis of Variable Contribution Margin (VCM).

    Due to price increase in fuel prices and other factors, both plants have approached M/o I&P for revision of VCM and capping of GST at the price paid by the plants.

    READ MORE: CMOs worry over power outages, 100% cash margin on imports

    The ECC after discussion approved the proposal to ensure compliance with the earlier decision of the ECC and the Federal Cabinet of shifting both the plants to indigenous gas.

    The committee further directed Ministries of Petroleum, Finance, National Food Security and Industries & production to work out the gas price/VCM for the Fertilizers. The ECC also decided that Sales tax may be charged on the actual price of the gas being paid by the company.

  • KAPCO to contest NEPRA’s show cause notice

    KAPCO to contest NEPRA’s show cause notice

    KARACHI: Kot Addu Power Company (KAPCO) on Tuesday announced to contest a show cause notice issued by a regulatory authority.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said it will contest the show cause notice as per law by, inter alia, submitting a detailed reply within the stipulated period and will vehemently present its case before NEPRA and all relevant forums that there is no breach by the Company of any rules and regulations under the NEPRA Act.

    READ MORE: Pakistan approves LNG at $9 per MMBTU for export sector

    The National Electric Power Regulatory Authority (NEPRA) has issued a show cause notice (received on July 25, 2022) to the Company under section 27B of Regulatory of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act) read with relevant rules and regulations alleging prima facie violation of Regulation 6 (2) of NEPRA Interim Power Procurement (Procedures and Standards) Regulations, 2005 in respect of the extension of the Company’s Power Purchase Agreement (PPA) for a period of 485 days pursuant to the terms agreed between the Company and the Power Purchaser for settlement of the liquidated damages dispute between the Company and the Power Purchaser by invoking the terms of the PPA under Other Force Majeure Events (OFME).

    READ MORE: NEPRA to conduct public hearing on KE’s petition on July 28

    Through the show cause notice, NEPRA has sought reply of the Company, to be submitted not later than fifteen days of receipt of the show cause notice, as to why appropriate legal action may not be taken against the Company under relevant rules and regulations of the NEPRA Act, inter alia, including imposition of fine as prescribed.

    It is Company’s position that the extension of the PPA for 485 days is within the terms of the PPA and Company’s application for extension of generation license was filed with NEPRA within the period stipulated in the applicable regulations. Hence, there is no breach by the Company of any applicable regulations.

  • Pakistan approves LNG at $9 per MMBTU for export sector

    Pakistan approves LNG at $9 per MMBTU for export sector

    ISLAMABAD: Pakistan on Monday approved a rate of $9 per MMBTU for supply of LNG to export sector across the country.

    The country’s apex economic coordination body approved the rates to provide competitive environment to the export sector at par with regional economies.

    READ MORE: NEPRA to conduct public hearing on KE’s petition on July 28

    Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division, on Monday.

    Federal Minister for Defence Khawaja Muhammad Asif, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Power Khurram Dastgir Khan, Shahid Khaqan Abbasi – MNA, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Mr. Musadik Masood Malik, Rana Ihsan Afzal, Coordinator to PM on Commerce & Industry, Federal Secretaries and senior officers attended the meeting.

    READ MORE: Revised power tariff, taxes on electricity bills in Pakistan

    Ministry of Commerce presented a summary on regional competitive energy rates for export oriented sectors during financial year 2022-23.

    It was submitted that in pursuance of the decisions of ECC dated August 16, 2021 and the Federal Cabinet dated August 24, 2021, the government provided energy to the export oriented sectors namely Textile including Jute, Leather, Carpet, Surgical and Sports goods at regional competitive rates to reduce cost of manufacturing and enhance exports.

    The ECC after detailed discussion approved RLNG rate at US $9 per MMBTU, all inclusive to five export oriented sectors across Pakistan for existing gas connections.

    READ MORE: K-Electric, Siemens sign deal for KKI Grid construction

    A subsidy cover of Rs. 40 billion for RLNG has been allocated under Federal budget 2022-23 which will be reviewed on quarterly basis.

    Further, ECC recommended to the Federal Cabinet to raise the tariff of indigenous gas for export oriented sectors at Rs. 1350 per MMBTU and for general industry at Rs. 1550 per MMBTU.

    The ECC also approved the electricity rate at US cents 9 per kWh to five export oriented sectors from 1st August 2022 subject to (i) subsidy of Rs. 20 billion provided by Finance Division (ii) quarterly review of the subsidy (iii) Petroleum Division will provide a list of industrial units getting subsidized gas and electricity, within one month to the ECC for review.

    READ MORE: Rupee devaluation severely affects KE’s profitability

    The committee approved supplementary grant of Rs750 million for Ministry of Information and Broadcasting for 75 years’ Independence Day celebrations.

    The ECC also approved proposal of Ministry of Interior for payment of compensation/goodwill package from its own budget.