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.

  • KE adjusts electricity bills under FCA relief package

    KE adjusts electricity bills under FCA relief package

    KARACHI: K-Electric, the power distribution utility for Karachi, has started providing relief under package to waive Fuel Charge Adjustment (FCA), which was announced by Prime Minister Shehbaz Sharif.

    According to a statement issued by the power utility on Tuesday, following PM’s Announcement of FCA’s relief package for the month of June, 1.8 million eligible electricity consumers across KE serviced territory in Karachi and adjoining regions are receiving benefit and being delivered adjusted bills for August at their doorsteps with extended due dates.

    READ MORE: Date extension demanded for electricity bills payment

    The announcement of June’s FCA relief has come in two parts, it was first announced for Non-ToU Residential Consumers having electricity consumption up to 200 units in June, and later it was extended to the same category of consumers with power consumption up to 300 units in June following the announcement by the Government of Pakistan.

    While the revised bills for August are being delivered to the consumers on their premises, it is also important to note that all those eligible consumers who have already paid their non-revised August bills will receive adjusted bills for the month of September.

    READ MORE: Power tariff hike termed disaster for industries

    Commenting on the matter, Spokesperson K-Electric said, “We are taking every possible measure to pass on the benefit to the qualifying consumers in line with the announcement made by the Honorable Prime Minister.

    Following the announcement of the relief package, our customer care centers operated for extended hours and remained open during the weekends for consumers’ convenience.

    However, to further ease the procedure for their benefit, we are also delivering the bills to consumers’ doorsteps so that they do not have to visit our centers physically. KE Customers may also download their bills via KE WhatsApp Service, KE Live App and from the company’s website.”

    While reiterating the eligibility criteria of the relief package, the Spokesperson further said, “June FCA’s relief applies only to Non-ToU residential consumers who have a power consumption equal to or less than 300 units.

    READ MORE: Pakistan petroleum sales slump by 24% in 2MFY23

    All the remaining electricity consumers, such as ToU residential consumers, Non-ToU residential consumers having power consumption exceeding 300 units, commercial, and industrial consumers do not qualify for the relief, and thus, are requested to timely pay their bills to avoid late payment surcharge.”

    “Our customer care platforms, including our call center 118, 8119 SMS service, and social media channels are also available 24/7 to answer any query from our consumers in this regard,” the Spokesperson further added.

    K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas.

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

    The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.

  • Date extension demanded for electricity bills payment

    Date extension demanded for electricity bills payment

    Karachi Chamber of Commerce and Industry (KCCI) on Monday demanded the authorities to extend the last date for payment of electricity bills across Pakistan as in the ongoing extraordinary situation, neither the business and industrial community nor the poor masses were in a position to pay their bills.

    Keeping in view the hardships being faced by the citizens and business and industrial community of Pakistan due to massive flashfloods, KCCI President Muhammad Idrees has appealed Prime Minister Shehbaz Sharif to issue directives for extension of last date for payment of electricity bills for entire Pakistan as in the ongoing extraordinary situation, neither the business and industrial community nor the poor masses were in a position to pay their bills.

    READ MORE: Power tariff hike termed disaster for industries

    In a letter sent to Prime Minister, President KCCI further requested to refrain DISCOs from charging FAC whereas the controversial Fixed Charges which are neither in favor of the industry nor the economy must also be withdrawn as soon as possible which would be widely welcomed by the entire business & industrial community of Pakistan.

    He pointed out that as the entire country is suffering badly because of massive flashfloods triggered by this year’s torrential rainfalls of Monsson Season, the business & industrial community across Pakistan is facing severe liquidity crunch as all the receivables have been pending due to ongoing extraordinary situation wherein the entire Pakistan remains totally sunk.

    READ MORE: Industry slams finance ministry for blocking letter of credit

    “Keeping in view the hardships being faced by the citizens and the business & Industrial community, some leniency would have been exhibited but unfortunately, this was not witnessed at any stage and regardless of taking the ground realities into consideration, electricity tariffs for all DISCOs and KE have been raised by more than 100 percent which are totally unabsorbable for the industries and unaffordable for the poor masses,” he noted.

    “Secondly, the issue of exorbitant Fuel Adjustment Charges (FAC) and Fixed Charges also stand unresolved which, we firmly believe, need to be reviewed and withdrawn at the earliest as these are neither in favor of the industries nor the economy,” he added.

    READ MORE: Clearance of banned cars, phones allowed on 100% surcharge

    He hoped that Prime Minister would instantly consider KCCI’s request and accordingly instruct relevant Ministry/ departments to provide relief otherwise, many industries, which are already at the verge of collapse, would close down forever which would trigger massive unemployment, chaos and other economic issues.

    READ MORE: Pakistan lifts ban on import of cars, phones, luxury items

  • Pakistan petroleum sales slump by 24% in 2MFY23

    Pakistan petroleum sales slump by 24% in 2MFY23

    KARACHI: Petroleum sales in Pakistan registered 24 per cent decline during first two months (July – August) 2022/2023, according to data released by Oil Companies Advisory Council (OCAC).

    According to details, the sales of all petroleum products fell to 2.96 million tons during first two months of the current fiscal year as compared with 3.90 million tons in the corresponding months of the last fiscal year.

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

    Produc-wise data showed a decline in all categories; offtake of petrol, high speed diesel (HSD) and furnace oil (FO) settled at 1.23 million tons, 0.94 million tons and 0.68 million tons, respectively.

    Total Petroleum sales settled at 1.53 million tons in August 2022, witnessing a decrease of 22 per cent YoY.

    Analysts at Arif Habib Limited attributed the fall to: heavy rainfall across the country leading to floods; lower furnace oil-based power generation; and massive surge in petroleum prices.

    READ MORE: Domestic oil sales grow by 14% in 8MFY22

    Hence, MS reported a drop of 13 per cent YoY arriving at 0.64 million tons in August 2022. Similarly, High Speed Diesel (HSD) volumes decreased by 26 per cent YoY clocking in at 0.50 million in August 2022.

    Whereas, Furnace Oil (FO) sales volumes plummeted by 35 per cent YoY in August 2022, reaching 0.33 million tons. Meanwhile, petroleum offtake climbed up by 6 per cent MoM, amid a reduction in MS and HSD prices compared to July 2022. As a result, MS and HSD volumes showed a jump of 7 per cent and 12 per cent MoM, respectively. However, FO sales recorded a fall of 7 per cent MoM in August 2022.

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

    Company-wise analysis shows that PSO registered a drop of 23 per cent YoY in August 2022 which was majorly contributed by plunge in sales of MS, HSD and FO by 13 per cent, 29 per cent and 36 per cent YoY, respectively.

    Similarly, sales of APL and SHEL also plummeted by 23 per cent and 19 per cent YoY, respectively. Meanwhile, HASCOL’s offtake surged by 78 per cent YoY amid massive jump in MS and HSD volumes.

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

    During 2MFY23, market share of PSO, SHEL and HASCOL remained unchanged at 52 per cent, 7 per cent and 2 per cent YoY, respectively. Whereas, market share of APL improved by 1 per cent YoY to 10 per cent (9 per cent in 2MFY22). Meanwhile, market share of other OMCs declined to 29 per cent in 2MFY23 from 30 per cent in same period last year.

  • New petroleum prices in Pakistan from September 01, 2022

    New petroleum prices in Pakistan from September 01, 2022

    ISLAMABAD: Pakistan on Wednesday announced increase in prices of all petroleum products. These prices are implemented with effect from September 01, 2022.

    The finance division notified the new prices of petroleum products with effect from September 01, 2022.

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    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.

    The sources said that the government was striving to get loans under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). The government met all the conditions and received $1.16 billion from the IMF after it’s executive board accorded approval on August 29, 2022.

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

    The benchmark Brent crude is about $100 dollars. 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 to July 31. 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 August 1, 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.

    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 July 15, 2022

  • OGRA cuts LPG rates for September 2022

    OGRA cuts LPG rates for September 2022

    ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Wednesday reduced the prices of Liquefied Petroleum Gas (LPG) for the month of September 2022.

    The regulatory body notified a price-revision of LPG for September, decreasing the commodity price by Rs75.11 per 11.8-kilogram cylinder.

    According to the notification, the authority reduced the locally produced LPG price by Rs6.36 per kilogram.

    After the revised price, the LPG cylinder would be sold in the open market at Rs2496.30 in September, which was available at Rs2,571.41 in August.

    Whereas, the per Metric Ton (MT) LPG rate has been fixed at Rs211,551.06 for September. The commodity sale price per MT was Rs217,916.22 in August.

  • OGDCL discovers gas deposits in Khyber Pakhtunkhwa

    OGDCL discovers gas deposits in Khyber Pakhtunkhwa

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Wednesday announced discovery of gas deposits at Kohat district in the province of Khyber Pakhtunkhwa.

    In a communication sent to the Pakistan Stock Exchange (PSX), the company said the TAL Joint Venture comprising MOL Pakistan Oil and Gas Co. B. V. (Operator), OGDCL (30 per cent working interest in exploratory phase), Pakistan Petroleum Limited (PPL), Pakistan Oilfield Limited (POL) and Government Holdings Private Limited Development and Production Lease (D&PL) in the Tolanj West-2 development well, which is located in district Kohat, Khyber Pakhtunkhwa Province.

    READ MORE: Pakistan State Oil’s profit surges by 224% to Rs95.72 bn

    OGDCL stated that the well was spudded-in on April 10, 2022 to produce already discovered horizon of Tolanj West D&PL i.e. Lumshiwal Formatino and to test Hydrocarbon potential of Lockhart & Shinwari & Samanasuk Formation (as exploratory targets). The well successfully drilled down to depth 4119.34m TVD.

    “Based on interpretation results of wireline logs data, the deeper Samansuk and Shinwari Formations were tested successfully at rate of around 2.5 million standard cubic feet per day (MMSCFD) of gas through choke size 32/64” at Wellhead Pressure (WHFP) of 374 Pounds per square inch (Psi),” OGDCL said, adding that further testing operations are going to evaluate full potential of the well.

    READ MORE: Hascol Petroleum announces rehabilitation plan

    It further said that the new discovery had de-risked an exploration play in deeper reservoirs over Tolanj West D&PL and in TAL Block, leading to new upside opportunities. “The discovery will also help and contribute towards improving energy security of the county from indigenous resources and add to the hydrocarbons reserves base of MOL, its joint venture partners and the country.

  • Pakistan State Oil’s profit surges by 224% to Rs95.72 bn

    Pakistan State Oil’s profit surges by 224% to Rs95.72 bn

    Pakistan State Oil Company Limited (PSO) on Friday declared massive growth in net annual profit of 224 per cent to Rs95.72 billion for the year ended June 30, 2022.

    The state oil company announced profit after tax at Rs95.72 billion for the year ended June 30, 2022 as compared with Rs29.55 billion in the preceding fiscal year.

    PSO announced Earnings Per Share (EPS) of Rs194.35 for the fiscal year under review as compared with Rs62.63 in the preceding fiscal year.

    READ MORE: National Bank announces 28% fall in net profit for 1HCY22

    According to consolidated financial results submitted to Pakistan Stock Exchange (PSX), the Board of Directors of PSO in their meeting on August 26, 2022 approved final cash dividend for the financial year ended June 30, 2022 at the rate of Rs10 per share i.e. 100 per cent.

    According to the consolidated results, the net sales of the company surged to Rs2,541.73 billion for the year ended June 30, 2022 as compared with Rs1,223.68 billion in the preceding year.

    READ MORE: Attock Petroleum declares massive 277% growth in annual profit

    The gross profit of the company jumped to Rs178.13 billion for the fiscal year 2021/2022 as compared with Rs57.25 billion in the preceding fiscal year.

    Annual expenses of PSO also increased to Rs37.62 billion as compared with previous year’s Rs20.69 billion.

    Profit from operations sharply increased to Rs165.83 billion during fiscal year 2021/2022 as compared with Rs55.98 billion.

    READ MORE: Shell Pakistan announces Rs7.47 billion profit for 1HCY22

  • Pakistan to increase petroleum prices from September 01, 2022

    Pakistan to increase petroleum prices from September 01, 2022

    ISLAMABAD: Pakistan is likely to increase prices of petroleum products from September 01, 2022 due to expected imposition of sales tax and petroleum levy.

    Besides, international oil prices are also seeing upward movement, sources said on Friday.

    The federal government will announce the revised prices of petroleum products on August 31, 2022 for next fortnight effective from September 01, 2022.

    Previously, the federal government on August 15, 2022 and revised upward the rate of petrol effective from August 16, 2022.

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

    According to the sources the government had kept the sales tax rate at zero per cent on petroleum products. The prevailing normal sales tax rate is 17 per cent. If the government implements the normal sales tax rate then the prices of petroleum products will witness massive rise.

    The finance division issued following new prices effective from August 16, 2022:

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

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

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

    The rate of light diesel oil (LDO) was 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.

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

    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.

    The sources said that the government is striving to get loans under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). Almost all the conditions have been met and the government is hoping the executive board of the IMF would release an amount of $1.17 billion through an approval at a meeting scheduled for August 29, 2022.

    The sources said that the government would impose sales tax on petroleum products in order to fulfill requirements under the IMF program.

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

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

    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.

    The benchmark Brent crude is about $100 dollars. 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 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    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.

    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.

  • Hascol Petroleum announces rehabilitation plan

    Hascol Petroleum announces rehabilitation plan

    KARACHI: Hascol Petroleum Limited on Wednesday announced a rehabilitation plan for the company through settlement of liabilities.

    In a communication sent to Pakistan Stock Exchange (PSX), Hascol Petroleum said that the Board of Directors of the company, in its meeting held on August 23, 2022, approved the plan for rehabilitation of the company through restructuring and settlement of liabilities of the company as per proposal prepared by the management.

    READ MORE: Shell Pakistan stops aviation operations across country

    The board has also approved the draft of letter to be sent to all secured creditors/banks/financial institutions conveying the rehabilitation plan and the process intended to be followed by the company for implementing the same i.e. through a Scheme of Arrangement to be presented to the High Court of Sindh at Karachi.

    The board has further given the management a go-ahead to prepare the scheme on the basis of the rehabilitation plan in consultation with the transaction legal counsel and auditors/accountants engaged by the company for such purpose and present the same for approval of the board for submission before the relevant competent court.

    READ MORE: Businessmen express shock over petroleum price hike in Pakistan

    The scheme is, however, subject to its approval by the creditors and shareholders and sanction of the competent court as per requirement of the relevant law and requisite approvals to be obtained from competent authorities.

  • Shell Pakistan announces Rs7.47 billion profit for 1HCY22

    Shell Pakistan announces Rs7.47 billion profit for 1HCY22

    KARACHI: Shell Pakistan Limited on Wednesday announced Rs7.47 billion as after tax profit for the half year ended June 30, 2022.

    The Board of Directors of Shell Pakistan Limited (SPL) approved the company’s half year results on August 17, 2022.

    The Company posted a profit after tax of Rs7.47 billion compared to the profit of Rs2.15 billion made in the same period last year.

    READ MORE: Shell Pakistan stops aviation operations across country

    The encouraging turnaround is mainly driven by improved business performance focusing on strategic priorities such as differentiated fuels and lubricants, the positive change in pricing formula to pricing agency S&P Global Platts’ indexes by the government, and safe and efficient fuel operations.

    During this period, the Mobility business launched 13 new retail sites which will help deliver increased volume. Shell V-Power remains the market leader in the premium fuels category.

    Through successful dialogue with the government, we will see expansion of our network in Punjab, which will help us grow.

    Furthermore, the Company authored a book on Road Safety titled “Once upon a Road” with the aim of driving the behaviours in keeping roads safer in Pakistan.

    READ MORE: Businessmen express shock over petroleum price hike in Pakistan

    The book will be part of the Care Foundation school curriculum of sixth grade across Pakistan. The Company also announced its decision to discontinue its aviation operations across Pakistan.

    Presently, SPL carries out its aviation related operations at four locations. They are Jinnah Airport in Karachi, Quetta International Airport, Begum Nusrat Bhutto Airport in Sukkur and Nawabshah Airport.

    After due consideration, SPL has decided that it is no longer commercially viable to continue with its aviation business in Pakistan.

    READ MORE: Attock Petroleum declares massive 277% growth in annual profit

    Shell Pakistan remains committed to continuing all its other businesses and operations in Pakistan, which remain unaffected.

    The Company will actively work to minimize impact of current challenges and endeavour to capture opportunities to ensure the company plays a key role in developing Pakistan’s energy future.