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 petroleum prices in Pakistan from June 16, 2022

ISLAMABAD: Pakistan on Wednesday announced yet another hike in petroleum prices effective from June 16, 2022.

Finance Minister Miftah Ismail at a press conference announced the increase in prices of petroleum products.

It is third consecutive increase in petroleum products. The government massively increased the prices of petroleum products.

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

The finance minister announced an increase of Rs24 per liter in price of petrol.

The price of petrol increased by Rs84 to Rs233.89 from Rs149.89 as of May 26, 2022.

Similarly, the government announced to increase the price of diesel to Rs263.31 per liter effective from June 16, 2022. The rate of high speed diesel has been increased by Rs59 per liter. The rate of this product was Rs144.16 as of May 26, 2022. A cumulative increase of Rs119 during past 20 days.

New prices of petroleum products with effect from June 16, 2022 will be as follows;

i. MS ( Petrol) Rs. 233.89/Liter

ii. High Speed Diesel(HSD) Rs. 263.31/Liter

iii. Kerosene (SKO) Rs. 211.43/Liter

iv. Light Diesel Oil (LDO) Rs. 207.47/Liter.

READ MORE: Petroleum prices in Pakistan from June 01, 2022

Previously, the petrol prices have been increased up to Rs60 per liter during May 27 to June 02.

The Finance Minister Miftah Ismail announced the increase in prices of petroleum products twice to persuade the International Monetary Fund (IMF) to release the next tranche of around $1 billion.

The PTI government during its tenure maintained the petrol prices by granting huge subsidized rates to facilitate the citizens. As though the new government still kept the same subsidy on petrol till May 26, 2021.

READ MORE: Petroleum levy to generate Rs750 billion

However, on account of pressure by IMF and the high price of oil in the international market has left no option for the government to minimize the prices.

According to the sources, the government may further increase the petroleum prices tonight to meet the IMF demand.

It may be mention here that the government has very few choices in not revising the prices of petroleum products because of high international oil prices and sharp decline in rupee value.

READ MORE: Share of domestic electricity consumption declines

June 15, 2022
What are new petroleum prices in Pakistan?

KARACHI: The government is likely to revise the prices of petroleum products today June 15, 2022 for next fortnight. Recently, the petrol prices have been increased up to Rs60 per liter during May 27 to June 02.

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

The Finance Minister Miftah Ismail announced the increase in prices of petroleum products twice to persuade the International Monetary Fund (IMF) to release the next tranche of around $1 billion.

After the increase, the prices effective from June 03, 2022 to till date are:

READ MORE: Petroleum prices in Pakistan from June 01, 2022

Petrol at Rs209.86 per; High Speed Diesel at Rs204.15 per liter; kerosene oil at Rs181.94 per liter; and light diesel oil at Rs178.31 per liter.

The PTI government during its tenure maintained the petrol prices by granting huge subsidized rates to facilitate the citizens. As though the new government still kept the same subsidy on petrol till May 26, 2021.

READ MORE: Petroleum levy to generate Rs750 billion

However, on account of pressure by IMF and the high price of oil in the international market has left no option for the government to minimize the prices.

According to the sources, the government may further increase the petroleum prices tonight to meet the IMF demand.

READ MORE: Share of domestic electricity consumption declines

It may be mention here that the government has very few choices in not revising the prices of petroleum products because of high international oil prices and sharp decline in rupee value.

June 15, 2022
Petroleum levy to generate Rs750 billion

ISLAMABAD: The government has estimated a collection of Rs750 billion as petroleum levy during next fiscal year 2022/2023.

It is worth mentioning that the previous PTI government had not imposed a petroleum levy in order to provide petroleum products at cheaper rates.

READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023

However, the current coalition government led by PML-N in its budget 2022/2023 announced on June 10, 2023 estimated collection of Rs750 billion during the next fiscal year.

The government has estimated a collection of Rs135 billion in the current fiscal year.

READ MORE: Budget 2022/2023: Salient features of customs duty act

The present government also estimated an amount of Rs40 billion through natural gas development surcharge during the next fiscal year as compared with existing estimates of Rs30 billion in the outgoing fiscal year.

An amount of Rs70 billion has been estimated to be collected from royalty on natural gas during the next fiscal year as compared with existing estimates of Rs60 billion in the current fiscal year.

READ MORE: Budget 2022/2023: Salient features of sales tax

Under the head of gas infrastructure development cess (GIDC) the government is estimating a collection of Rs200 billion during the next fiscal year as compared with existing Rs25 billion in the current fiscal year.

The government has also estimated a collection of Rs10 billion from windfall levy against crude oil as compared with estimated Rs12 billion in the outgoing fiscal year.

READ MORE: Budget 2022/2023: Salient features of income tax

June 11, 2022
Share of domestic electricity consumption declines

ISLAMABAD: The share of electricity consumption by domestic and commercial consumers in the total consumption has declined during first nine months of the current fiscal year, according to Economic Survey of Pakistan 2021/2022.

The share of electricity consumption by household users fell to 47 per cent during July – March 2021/2022 as against the share of 49.1 per cent in the same period of the last fiscal year.

READ MORE: Average inflation estimated up to 12% in FY22

Electricity consumption in the commercial sector has also witnessed a decline and stood at 7 percent in FY2022, down from 7.4 percent in FY2021.

However, the share of Industry in electricity consumption has increased to 28 percent during July-April FY2022 from 26.3 percent during July-April FY2021.

The use of electricity in agriculture sector has slightly increased to 9 percent from 8.9 percent. The share of electricity consumption in other sectors, including public lighting, general services and other government traction has decreased to 8 percent from 8.3 percent.

READ MORE: SBP jacks up policy rate by 6.75% to 13.75%

There is a slight shift in the percentage share of different sources in electricity generation. Thermal has still the largest share in electricity generation in the country, although its percentage contribution has declined from 62.5 percent during Jul-April FY2021 to 60.9 percent during Jul-April FY2022.

READ MORE: Tax to GDP ratio estimated at 10.8% in FY22: Economic Survey

Similarly, the percentage contribution of Hydel in electricity generation has also reduced from 27.8 percent in Jul-April FY2021 to 23.7 percent during Jul-April FY2022.

The percentage share of Nuclear has increased from 7.2 percent during Jul-April FY2021 to 12.35 percent during Jul-April FY2022. The contribution of renewable in the electricity generation has increased from 2.4 percent during Jul-April FY2021 to 3.02 percent in the first ten months of FY2022.

READ MORE: LSM posts 10.4% growth in July – March: Economic Survey

June 10, 2022

Pakistan hikes petroleum prices up to 50.71% in a week

ISLAMABAD: The Pakistan government led by a coalition government has sharply increased petroleum prices by up to 50.71 per cent in just one week.

Finance Minister Miftah Ismail on Thursday made second announcement in just span of one week to increase the prices of petroleum products around Rs30 per liter each time.

The new petroleum prices per liter effective from June 03, 2022 are:

Description	Price on May 26, 2022	Price on June 03, 2022	Difference	Percent increase
Petrol	Rs149.86	Rs209.86	Rs60	40%
High Speed Diesel	Rs144.15	Rs204.15	Rs60	41.62%
Kerosene oil	Rs129.56	Rs181.94	Rs52.38	45%
Light Speed Diesel	Rs118.31	Rs178.31	Rs60	50.71%

A statement issued by the finance division on Thursday stated that crude oil and petroleum prices are increasing substantially in the international market.

Maintaining POL prices at the hugely subsidized rates results in increasing both budget deficit and imports.

The subsidized rates of these POL products also poses supply chain risk, the finance division said.

The current fiscal position and market prices leave no option for the government but to increase the prices. Therefore, the government has decided to increase the prices of petroleum products with effect from June 03, 2022 keeping petroleum levy and sales tax at zero per cent.

“We note that the government is still losing money on petrol, high speed diesel and light diesel oil,” the finance division added.

The previous PTI government in February 2022 decided to freeze the prices of petroleum products at the level mentioned above in the table on May 26, 2022 up to June 30, 2022. However, former Prime Minister Imran Khan was removed from the office through a no-confidence motion on April 10, 2022.

Since then, the new coalition government also maintained the prices till May 26, 2022. But under pressure of International Monetary Fund (IMF) for the release of next tranche of around $1 billion the government had no option but to increase the prices.

Analysts said that the significant hike in prices of petroleum products would bring a storm of inflation as POL prices are directly linked to all the prices of essential and non-essential items.

June 3, 2022

New petroleum prices in Pakistan from June 03, 2022

KARACHI: The government has announced further increase in prices of petroleum products by Rs30 per liter each from 12:00 AM of June 03, 2022.

Finance Minister Miftah Ismail in a press conference on Thursday announced a significant increase in petroleum prices by Rs30 per liter each.

READ MORE: Petroleum prices in Pakistan from June 01, 2022

It is second consecutive increase in a week as the country increased the prices Rs60 per liter on all petroleum products during past seven days.

READ MORE: Pakistan increases petroleum prices by Rs30 per liter

The prices of petroleum products from June 03, 2022 shall be: Petrol at Rs209.86 per; High Speed Diesel at Rs204.15 per liter; kerosene oil at Rs181.94 per liter; and light diesel oil at Rs178.31 per liter.

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

READ MORE: Govt. decides to continue subsidy on petroleum prices

However, the finance ministry in a statement issued on May 31, 2022 stated that the government had decided to keep the prices of petroleum products unchanged with an aim to provide relief to the consumers, despite revenue losses due to rising petroleum prices globally.

“With a view to provide maximum relief to the consumers, the Prime Minister of Pakistan has directed that the current prices of petroleum products as notified on 27th May, 2022 shall remain unchanged, despite revenue losses due to rising petroleum prices globally,” Finance ministry said in a statement issued here.

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

June 2, 2022
Petroleum prices in Pakistan from June 01, 2022

KARACHI: The government of Pakistan on Tuesday decided to keep the petroleum prices unchanged for the next fortnight despite revenue losses due to rising petroleum prices globally.

The prices of petroleum products from June 01, 2022 shall be: Petrol at Rs179.86 per; High Speed Diesel at Rs174.15 per liter; kerosene oil at Rs155.56 per liter; and light diesel oil at Rs148.31 per liter.

READ MORE: Pakistan increases petroleum prices by Rs30 per liter

Earlier, the government on May 26, 2022 announced a massive increase in prices of all petroleum products by Rs30/- per liter in order to satisfy International Monetary Fund (IMF) for release of $1 billion tranche.

READ MORE: Govt. decides to continue subsidy on petroleum prices

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

However, the finance ministry in a statement issued on May 31, 2022 stated that the government had decided to keep the prices of petroleum products unchanged with an aim to provide relief to the consumers, despite revenue losses due to rising petroleum prices globally.

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

“With a view to provide maximum relief to the consumers, the Prime Minister of Pakistan has directed that the current prices of petroleum products as notified on 27th May, 2022 shall remain unchanged, despite revenue losses due to rising petroleum prices globally,” Finance ministry said in a statement issued here.

READ MORE: New government keeps petroleum prices unchanged

May 31, 2022
New petroleum prices in Pakistan from May 27, 2022

ISLAMABAD: The finance division of the ministry of finance on Thursday issued new prices of petroleum products effective from May 27, 2022 after a raise of Rs30 per liter on all petroleum products.

The new prices of petroleum products are as follow:

READ MORE: Pakistan increases petroleum prices by Rs30 per liter

The rate of petrol has been increased to Rs179.86 per liter from Rs149.86.

The price of high speed diesel (HSD) has been jacked up to Rs174.15 per liter from Rs144.15.

The rate of kerosene oil has been increased to Rs155.56 per liter from Rs125.56.

The price of light diesel oil has been increased to Rs148.31 per liter from Rs118.31.

READ MORE: Govt. decides to continue subsidy on petroleum prices

About couple of hours ago, Finance Minister Miftah Ismail announced to raise the prices of all petroleum products in order to comply with the demand of International Monetary Fund (IMF) for continuation of bailout package. Pakistan will get around $1 billion tranche under Extended Fund Facility (EFF) after fulfilling the IMF demand.

The finance division in a press release said that maintaining the existing petroleum products prices at the existing subsidized rates is constantly increasing the twin deficit for the government besides posing huge risk for energy supply chain.

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

Also Oil Marketing Companies (OMCs) and refineries are facing difficulties in getting confirmation of international banks for LCs/SBLCs, reluctance of local banks in opening of LCs and hardships of importers in obtaining insurance coverage for very high prices cargos.

In order to rationalize the petroleum products prices, the government has decided to revise the existing petroleum products prices.

“To keep prices of petroleum products affordable, prices are increased partially and new prices effective from May 27, 2022,” the finance division said.

READ MORE: New government keeps petroleum prices unchanged

May 27, 2022
Pakistan increases petroleum prices by Rs30 per liter

ISLAMABAD: Pakistan on Thursday announced a massive increase in prices of all petroleum products by Rs30/- per liter in order to satisfy International Monetary Fund (IMF) for release of $1 billion tranche.

Finance Minister Miftah Ismail at a press conference announced to increase the prices of petroleum products admitting that there was no way out without removal of subsidy on petroleum products.

READ MORE: Govt. decides to continue subsidy on petroleum prices

Ismail said that the government had decided to increase the prices of petrol, high speed diesel and kerosene oil by Rs30/- liter each effective from midnight 12:00 AM on May 27, 2022.

A day earlier, the IMF refused to continue its talks on bailout package under Extended Fund Facility (EFF) until Pakistan removed the subsidy on fuel and energy.

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

Former PTI government in February 2022 decided to grant subsidy on petroleum products to ease inflationary pressure on masses.

With the announcement the prices of petroleum products would be: Petrol Rs179.86 per liter; diesel Rs184.15; and kerosene oil Rs156.56.

READ MORE: New government keeps petroleum prices unchanged

On February 28, 2022, former Prime Minister Imran Khan announced reduction in prices of petroleum products and freeze the prices till June 30, 2022. This decision came with announce of multi-billion rupees subsidy to keep the fuel prices lower.

This decision was strongly criticized by the legislators, who are now sitting on the treasury benches. The present government despite strong opposition to the decision to grant of subsidy on the petroleum prices, has no option but to keep the prices unchanged during its tenure of more than a month.

However, after the refusal of the IMF to continue talks without removal of subsidy, the PML-N led government passed on heavy burden to the masses.

READ MORE: Pakistan surrenders to IMF, agrees to remove subsidies

May 26, 2022
K-Electric, Siemens sign deal for KKI Grid construction

KARACHI: K-Electric has awarded the EPC contract for the construction of 500/220 kV KANUPP – K-Electric Interconnection (KKI) Grid to Siemens (Pakistan) Engineering Company Limited, according to a statement issued on Tuesday.

The signing ceremony between Siemens and K-Electric was held at KE’s Head Office. KKI Grid will be the addition of fourth interconnection in KE’s network following the existing NKI and KDA Grids and the upcoming Dhabeji Interconnection.

The estimated value of the EPC contract is around $84 million. KE had also entered into agreement in February 2022 for the construction of a 220 kV double circuit transmission line for evacuation of power from the KKI Grid.

The KKI Interconnection, will enable KE to off-take 500 to 800 megawatts (MW) of electricity from the National Grid from summer of 2024 (evacuation capacity of KKI Grid is more than 1000 MVA). Additionally, the infrastructure enhancement will improve system stability and reliability for consumers.

As per NEPRA’s State of Industry Report 2021, KE registered a sales growth of 25 per cent among its industrial consumers in 2021, almost 11 percentage points higher than the rest of the country. Coupled with sustained investment of over Rs430 billion since privatization, Karachi’s appetite for energy is increasing at a rapid pace.

Cognizant of the present and evolving demands, KE has been working actively with the Government of Pakistan and especially the Ministry of Energy under the guidance of NEPRA to bolster its infrastructure to enable Karachi to receive additional power from the National Grid.

Speaking about the occasion, Chief Generation and Transmission Officer KE, Abbas Husain stated: “KE is fully committed towards supporting Karachi’s energy ambitions. We are not only working with multiple stakeholders to cater the current demand, but also continue to innovate our services to cater the growth.

“We are grateful to the Federal Government, Ministry of Energy, and our regulator NEPRA for their continued patronage and support. This spirit of collaboration and consensus is integral to the sustainability of Pakistan’s economic and strategic hub.”

CEO & MD Siemens Pakistan, Markus Strohmeier also expressed his happiness, stating, “This project is another significant step to strengthen Karachi’s development as modern industrial and economic metropolis.

“Through KKI Interconnect, we are increasing and securing stable access to electricity for the greater society, who’s future is built on reliable energy supply.”

KE has also achieved the first fire on the first unit of its flagship RLNG-based 900 MW Bin Qasim Power Station 3 (BQPS-III). Upon commissioning, this landmark project will significantly increase KE’s generation capacity while also enhancing efficiency of KE’s generation fleet.

The plant is utilizing the latest in turbine technology and is anticipated to be among the top five most efficient generation units in the country upon completion.

Looking to the future, KE is also aligned with the Federal Government’s vision to increase the share of renewable energy into its generation mix with a planned addition of almost 1,100 MW of green energy by 2030 subject to required approvals.

May 17, 2022