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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.

  • Pakistan keeps petroleum prices unchanged from October 16, 2022

    Pakistan keeps petroleum prices unchanged from October 16, 2022

    The government of Pakistan has decided to keep the prices of petroleum products unchanged for the fortnight starting from October 16, 2022.

    Finance Minister Muhammad Ishaq Dar in a statement said that Oil and Gas Regulatory Authority (OGRA) had sent summary for increase in prices of petroleum products but the government had decided to maintain the prices at the level of October 01, 2022 and will be applicable till October 31, 2022.

    READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022

    Therefore the prices from October 16, 2022 shall be remained at the level of October 01, 2022. Previously, on September 30, 2022 following changes in petroleum prices were announced:

    The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.

    The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.

    The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.

    The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.

    READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    Energy experts were believing that the government would announce a sharp reduction in petroleum prices for next fortnight starting from October 16, 2022 owing to massive gain in value of local currency and lower prices of oil in international markets.

    Finance Minister Ishaq Dar had also hinted to reduce the oil prices significantly in order to stabilize the economy and ease the burden of high prices.

    The Pakistani Rupee (PKR) has recorded massive gain 13 sessions against the dollar.

    Furthermore, the benchmark US Brent oil also fell owing to fears of lower demand globally.

    The government has reduced the petroleum prices in the wake of massive decline in international oil prices.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 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 September 01, 2022

    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.

  • FBR collects Rs459 billion as sales tax on POL products in TY 2022

    FBR collects Rs459 billion as sales tax on POL products in TY 2022

    The Federal Board of Revenue (FBR) has reported a substantial growth in sales tax collection on the import of Petroleum, Oil, and Lubricants (POL) products during the tax year 2022, reaching an impressive Rs459 billion.

    (more…)
  • Mari Petroleum plans first offshore drilling by 4QFY23

    Mari Petroleum plans first offshore drilling by 4QFY23

    KARACHI: Mari Petroleum Company has planned to drill first well at offshore block in fourth quarter of the current fiscal year.

    The management of the company on Friday while commenting on the Abu Dhabi offshore block, disclosed that the company planned to drill first well in 4QFY23 with the consortium. “For this, company has invested $10 million which will bear drilling expenditures,” according to Insight Research.

    READ MORE: Mari Petroleum stops production from Zarghun, Bolan fields

    Mari Petroleum conducted corporate briefing to discuss financial results and future outlook of the company.

    The Insight Research highlighted key takeaways from the briefing.

    During fiscal year 2021/2022, MARI posted highest net sales and profit after tax of PKR 95 billion and PKR 33 billion with PKR 247.80 Earning Per Share (EPS), up by 30 per cent and 5 per cent Year on Year (YoY), respectively.

    The increase in earnings is attributable to higher realized gas prices led by elevated oil prices and PKR devaluation coupled with higher gas production.

    Company’s production has crossed the mark of 100K BOEPD first time in history due to export of undrawn volumes towards SNGPL network and addition of new wells.

    To highlight, company has exported 45bcf gas towards SNGPL network under 3rd party pipeline access to sell gas.

    The company has planned a CAPEX of $200 million for a period of FY23-FY24, however, materialization of this development hinges on various factors, including security conditions, operational disruptions etc.

    As part of company’s aggressive strategy to acquire new exploration sites, company has won 11 blocks in 2 years (FY21 and FY22), taking cumulative blocks to 29.

    According to management, gas reserves estimate for Bannu west-1 is 55 mmcfd, whereas it will take 7-8 months to come online depending upon on the security situation.

    As per company, average production of Habib Rahi Limestone (HRL) is 630 mmcfd in which company is entitled to receive incremental pricing based on PP-12 on production above 525 mmcfd.

    In recent development, company has successfully completed and tested its first ever horizontal development well in HRL reservoir at a gas rate of around 21mmcfd with a well head pressure of 426 Psi.

  • Pakistan Petroleum discovers gas in Sindh

    Pakistan Petroleum discovers gas in Sindh

    KARACHI: Pakistan Petroleum Limited (PPL) on Wednesday announced discovery of gas from its well located in District Sanghar, Sindh province.

    The company in a communication sent to Pakistan Stock Exchange (PSX), announced a gas and condensate discovery from exploration well Shahpur Chakar North X-1, in Block 2568-18 (Gambat South), located in District Sanghar, Sindh Province.

    READ MORE: Pakistan may sharply cut petroleum prices from Oct 16, 2022

    Block 2568-18 (Gambat South) EL is operated by Pakistan Petroleum Limited (PPL) with 65 per cent working interest (WI) along with its Joint Venture Partners Government Holdings Private Limited (GHPL) and Asia Resources Oil Limited (AROL) with 25 per cent and 10 per cent WI, respectively.

    READ MORE: OGDCL announces gas discovery in KPK

    The exploration well Shahpur Chakar North X-1 was drilled to a depth of 3,560 m to test the hydrocarbon potential of Massive Sand of Lower Goru Formation. Based on the wire line logs, potential hydrocarbon bearing zones were identified inside the target reservoirs. Initial testing in the Massive Sand (Deep) interval of Lower Goru Formation flowed 15.2 Million Cubic Feet per Day (MMSCFD) of gas along with condensate of 321 Barrels per Day (BPD) at a Flowing Wellhead Pressure (FWHP) of 3,061 psig on a 32/64″ choke.

    READ MORE: OGDCL announces gas discovery at Sial-1 Well in Sindh

    This discovery will add hydrocarbon reserves of PPL and joint venture partners, contribute in reducing the energy demand and supply gap in the country, and will save significant foreign exchange for the country through indigenous hydrocarbon production

  • Pakistan may sharply cut petroleum prices from Oct 16, 2022

    Pakistan may sharply cut petroleum prices from Oct 16, 2022

    ISLAMABAD: Pakistan may announce a sharp reduction in petroleum prices for next fortnight starting from October 16, 2022 owing to massive gain in value of local currency and lower prices of oil in international markets.

    Finance Minister Ishaq Dar has also hinted to reduce the oil prices significantly in order to stabilize the economy and ease the burden of high prices.

    READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022

    The Pakistani Rupee (PKR) has recorded massive gain during past 12 sessions against the dollar.

    A day earlier, the local currency gained PKR 21.74 against the dollar during the last twelve straight sessions. The exchange rate reached to near record low of PKR 239.71 on September 22, 2022 to the dollar but ended at PKR 217.97 on October 10, 2022. Dar recently claimed that the actual value of the dollar is below PKR 200 and he vowed to bring it down.

    READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    Furthermore, the benchmark US Brent oil also fell to $95.62 per barrel on Tuesday owing to fears of lower demand globally.

    Previously, the government announced a sharp reduction in oil prices effective from October 01, 2022, which are:

    The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.

    The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.

    The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.

    The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 2022

    The government has reduced the petroleum prices in the wake of massive decline in international oil prices.

    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 September 01, 2022

    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.

  • Faysal Bank, K-Electric collaborate to ease customer’s payment

    Faysal Bank, K-Electric collaborate to ease customer’s payment

    KARACHI: Faysal Bank Limited (FBL), one of the leading Islamic Banks in the country, and K-Electric have come together to ease customer’s payment burden in times of economic crunch.

    As part of the collaboration, Faysal Islami Noor Card holders will now be able to pay their electricity bills through easy instalment plan options of up to 3 months. Faysal Islami Noor card has gained immense popularity amongst industry card customers because it is a Shariah compliant alternative to conventional credit cards that offers amazing discounts and offers.

    Speaking on the occasion, Head Consumer Finance (FBL), Aneeq Malik said: “Customer convenience has always been of paramount importance to the Bank and our partnership with K-Electric is a depiction of our commitment to our customers. We are confident that through the proposition will allow customers to manage their monthly expenditures in a more convenient and relaxed manner.”

    Delighted at the launch of this campaign, Chief Distribution Officer at K-Electric, Amer Zia said, “Our collaboration with Faysal Bank through this offer is another testament of our commitment towards providing maximum relief to our consumers”.

    Feroz Khan, Head Unsecured Business (FBL) further added, “We are committed to further building customer loyalty by offering the best in class products and benefits to our valued customers. This collaboration aims to ease customer expenditure on their KE billings specifically in the high billing periods.”

  • NEPRA acknowledges KE’s operational performance

    NEPRA acknowledges KE’s operational performance

    KARACHI: A report published by National Electric Power Regulatory Authority (NEPRA) has acknowledged the improved operational performance of the KE, the utility company responsible for power generation and supply to Karachi.

    The report, published annually by National Electric Power Regulatory Authority (NEPRA), also highlighted the longstanding issue of supply of low gas to K-Electric’s power plants at Korangi and SITE, which is affecting 200 MW of generation capacity for Karachi and leading to expensive power generation.

    Through sustained investments, KE has been able to drive a significant reduction in Transmission and Distribution (T&D) losses, closing the financial year at 15.35%, lower than the regulator’s target of 15.95%. The utility has also been able to add over 250,000 new connections to its network bringing the total consumer base to over 3.4 million at the close of the fiscal year. Additionally, the number of units of energy served to these customers has also increased.

    Commenting on the results, Director of Communications & Spokesperson KE, Imran Rana stated, “We continue to explore ways to improve our services for our growing customer base, and we are very pleased that KE’s operational improvement is being acknowledged in Power Sector’s credible annual performance report from the Regulatory Authority, NEPRA.

    We look forward to carrying this momentum year on year, through increased digitization and automation of our processes and sustained investment across the value chain. We are also keeping our stakeholders – including the NEPRA Authority and the Ministry of Energy, Government of Pakistan among others – fully informed of the factors that continue to affect KE’s sustainability. Long delays in release of the Tariff Differential Subsidy (TDS) claims, and absence of supply of natural gas to KE are two important issues on top of the list that directly affects our ability to serve our customers.”

    KE has also been actively developing a culture of regular bill payment and expanded its facilities to offer consumers convenient channels to clear their dues. Over the year, KE’s website has been integrated with NIFT ePay gateway offering real-time bill payment through interbank fund transfers.

    Consumers can use the KE Live App to pay their bills from the convenience of their phones regardless of geographic location. Multiple banks and financial institutions have also been brought on board as partners offering cashback incentives and the option of converting utility bill payments on installments for certain credit cardholders.

    Furthermore, KE is also engaging with area representatives at a community level for support in promoting a culture of bill payment and has also established multiple facilitation camps across the city to address and support billing queries. These efforts have resulted in improved recovery ratios which closed at 96.69%. During the same period, recovery ratios for DISCOs across the country dropped by 7 percentage points to 90.51%.

    The company has also maintained a strong focus on safety, creating awareness on pertinent infrastructure issues including encroachment of constructed properties, the use of kundas, and unauthorized civil works carried across the city which create an unsafe environment for citizens. In addition to securing its infrastructure through earthing and grounding protocols, the utility continues to liaise with relevant civic agencies to ensure a safe and uninterrupted supply of electricity to the city. This has enabled KE to achieve a 28% reduction in safety related incidents within its territory. By comparison, safety incidents increased by 14% within state-owned DISCOs.

    The report also commented on macroeconomic and other factors such as the devaluation of the Rupee against the US Dollar, delays in completion on power projects and outages of new power projects which exacerbated the cost of fuel procurement and raised the cost of electricity for the end-user. The report recommends a lot of measures for the improvement of power sector for Government to consider.

  • Pakistan petroleum sales plunge by 23% in 1QFY23

    Pakistan petroleum sales plunge by 23% in 1QFY23

    KARACHI: Pakistan sales of petroleum products have plunged by 23 per cent in first quarter (July – September) of the current fiscal year 2022/2023, official data revealed on Monday.

    The petroleum sales fell to 4.49 million tons during the first quarter of the fiscal year 2022/2023 as compared with 5.86 million tons in the same quarter of the last year, according to Oil Companies Advisor Council (OCAC).

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

    The sales of HSD recorded 30 per cent decline to 1.46 million tons in the first quarter of the current fiscal year when compared with 2.1 million in the same quarter of the last fiscal year.

    Furnace oil sales slipped by 23 to 0.98 million tons during the quarter under review as compared with 1.27 million in the same period of the last fiscal year.

    Similarly, the sales of petrol fell by 21 per cent to 1.86 million tons during July – September 2022/2023 when compared with 2.35 million tons in the same period of the last fiscal year.

    READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022

    Whereas, the domestic sales of petroleum products plunged by 22 per cent Year on Year (YoY) basis in the month of September 2022.

    The sales of petroleum products fell to 1.52 million tons in September 2022 when compared with 1.96 million tons in the corresponding month of the last year.

    Analysts at Ismail Iqbal Securities attributed the sharp decline in petroleum sales to ongoing demand destruction following higher prices and overall economic slowdown.

    The steep decline has been witnessed in sales of high speed diesel (HSD), which fell by 26 per cent during the period under review. The sales of HSD dropped to 0.52 million tons in September 2022 as compared with 0.71 million tons in the same month of last year.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 2022

    Sales of furnace oil plummeted by 24 per cent to 0.31 million tons in the month under review as compared with 0.4 million tons in the same month of the last year.

    Likewise, the sales of petrol fell by 22 per cent to 0.63 million tons in September 2022 as compared with 0.8 million tons in September last year.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    According to Pakistan Bureau of Statistics (PBS) the petroleum products recorded massive jump in prices during the period.

    The official data showed the prices of HSD, petrol and furnace oil recorded increase of 120.67 per cent, 96 per cent and 51.63 per cent, respectively YoY in September 2022.

  • SNGPL to distribute 100,000 LPG cylinders to meet energy shortage

    SNGPL to distribute 100,000 LPG cylinders to meet energy shortage

    KARACHI: Sui Northern Gas Pipelines Limited (SNGPL) has approved the supply of 100,000 cylinders of LPG gas to meet energy needs in coming winter.

    In a material information shared with the Pakistan Stock Exchange (PSX) on Monday, SNGPL said in view of potential gas shortfall in the forthcoming winter, the Ministry of Energy (Petroleum Division) has advised to explore all possible options to meet energy needs of consumers, including supplying LPG cylinders.

    Accordingly, the Board of Directors of SNGPL in their meeting dated September 28, 2022, has approved the project of LPG distribution with 100,000 Cylinders.

    The estimated initial investment for the venture is up to Rs 1,200 million. The return on investment is not subject to present ROA regime and will be determined as per market dynamics.

  • Pakistan sharply reduces petroleum prices from October 01, 2022

    Pakistan sharply reduces petroleum prices from October 01, 2022

    ISLAMABAD: The government on Friday announced significant reduction in petroleum prices for next fortnight starting from October 01, 2022.

    According to the new prices, effective from October 01, 2022:

    The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.

    READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.

    The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.

    The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.

    The government has reduced the petroleum prices in the wake of massive decline in international oil prices.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 2022

    According to Reuters news agency oil prices fell $2 a barrel a day earlier, settling at nine-month lows in choppy trade, pressured by a strengthening dollar as market participants awaited details on new sanctions on Russia.

    Brent crude futures for November settled down $2.09, or 2.4 per cent, to $84.06 a barrel, plunging below levels reached on January 14. U.S. West Texas Intermediate (WTI) crude for November delivery dropped by $2.06, or 2.3 per cent to $76.71, the lowest since Jan. 6.

    Previously, the government revised the petroleum prices on September 21, 2022, which was scheduled to be announced on September 15, 2022.

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

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    Pakistani Rupee (PKR) has plunged by PKR 20 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).