Pkrevenue.com

Category: Energy

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

  • Prices of all POL products increased to wish New Year

    Prices of all POL products increased to wish New Year

    ISLAMABAD: The government on Friday increased prices of all petroleum products to wish the nation the New Year 2022.

    The prices have been increased across the board around Rs4 per liter on all the products.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    The prices have been implemented at 00:00 hours of January 01, 2022 for next fortnight.

    According to a notification issued by the finance division the new price of petrol has been increased by Rs4 to Rs144.82 per liter from Rs140.82.

    The rate of high speed diesel (HSD) has been increased by Rs4 to Rs141.62 per liter from Rs137.62.

    READ MORE: SBP revises manual on remittances for petroleum sector

    Similarly, the price of kerosene has been increased by Rs3.95 to Rs113.53 per liter from Rs109.53.

    Likewise, the price of light diesel oil has been increased by Rs4.15 to Rs111.06 per liter from Rs107.06.

    The notification stated that in the fortnightly review of petroleum products prices, the prime minister had rejected the proposal of Oil and Gas Regulatory Authority (OGRA) for increase in prices of petroleum products and advised to increase only Rs4 per liter to meet the petroleum levy target agreed with the International Monetary Fund (IMF).

    “Sales tax on petrol and diesel has been adjusted downwards as compared to December 16, 2021 to keep the prices lower,” the notification stated.

    READ MORE: FBR notifies increase in sales tax on petrol, HSD

  • Power generation rises by 13.4% in November 2021

    Power generation rises by 13.4% in November 2021

    KARACHI: The country’s power generation has recorded an increase of 13.4 per cent to 8,482 GWh (11,780 MW) in November 2021 as compared with 7,479 GWh (10,388 MW) in the same month of the last year.

    The rise in a generation was owed to higher generation from nuclear, coal, gas, furnace oil, and solar, analysts at Arif Habib Limited said.

    READ MORE: FBR notifies increase in sales tax on petrol, HSD

    Major contributors during November 2021 were hydel (share: 33 per cent), nuclear (share: 18 per cent), coal (share: 16 per cent), RLNG (share: 14 per cent), gas (share: 13 per cent), wind (share: 2 per cent), furnace oil (share: 2 per cent), and bagasse (share: 1 per cent).

    During the month, furnace oil, gas, nuclear, and coal-based power generation went up by 424 per cent, 150 per cent, 124 per cent and 26 per cent, respectively. However, RLNG, hydel and wind-based generation declined by 37 per cent, 6 per cent, and 5 per cent YoY, respectively.

    READ MORE: SBP revises manual on remittances for petroleum sector

    During November 2021, fuel cost for power generation increased by 85 per cent YoY to PKR 6.32/KWh mainly due to rise in furnace oil, coal and RLNG based cost of generation. In addition to this hydel and wind-based generation decreased by 6 per cent YoY and 5 per cent YoY, respectively.

    The analysts said that the rise in fuel cost by 85 per cent YoY to PKR 6.32/KWh during November 2021 was led by the following reasons:

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

    — RLNG-based cost of generation increased by 166 per cent YoY to PKR 17.29/KWh due to 123 per cent YoY rise in RLNG prices to PKR 2,720/mmbtu (USD 15.68/mmbtu).

    — Coal-based cost of generation went up by 85 per cent YoY to PKR 13.14/KWh during November 2021 due to 121 per cent YoY rise in coal prices.

    — furnace oil-based cost of generation increased by 72 per cent YoY to PKR 20.27/KWh.

    — hydel-based generation decreased by 6 per cent YoY.

    — Wind-based generation decreased by 5 per cent YoY.

    Brother Gas UAE invests $15 million initially in Pakistan
  • FBR notifies increase in sales tax on petrol, HSD

    FBR notifies increase in sales tax on petrol, HSD

    The Federal Board of Revenue (FBR) has announced an increase in sales tax on the supply of petrol and high-speed diesel (HSD), as outlined in the recently issued SRO 1640(I)/2021.

    (more…)
  • Petrol price reduces to Rs140.82 per liter

    Petrol price reduces to Rs140.82 per liter

    ISLAMABAD: The government on Wednesday decided to reduce the prices of petroleum products for next fortnight considering the fall in international oil prices.

    The government has not passed on the all the benefit of fall in international oil prices as it enhanced sales tax rates. However, the government kept the petroleum levy unchanged. The prices are applicable from December 16, 2021.

    Price on petrol cut by Rs 5 to Rs 140.82/ltr

    Price on diesel cut by Rs 5 to Rs 137.62/ltr

    Petroleum levy on petrol and diesel remained unchanged at Rs 13.62 and Rs 13.14.

    Sales tax on petrol raised from 1.63 per cent to 4.77 per cent. Ssles tax on diesel raises from 7.37 per cent to 9.08 per cent

    FBR hikes sales tax rates on petroleum products
  • SBP revises manual on remittances for petroleum sector

    SBP revises manual on remittances for petroleum sector

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday revised Foreign Exchange Manual related to remittances for petroleum sector operating under petroleum concession agreements.

    The central bank invited attention of Authorized Dealers is drawn towards Para 27 of Chapter 14 of Foreign Exchange Manual in terms of which SBP notified the process of remittance for Petroleum Sector.

    Based on representations received from various stakeholders, it has been decided to amend Para 27 of Chapter 14, as under:

    READ MORE: State Bank reduces retention period for foreign exchange

    27. Remittance for Petroleum Sector Operating under Petroleum Concession Agreement(s):

    Authorized Dealers are allowed to effect remittances, on account of purchase of Oil and Gas from Oil & Gas Exploration and Production (E&P) Companies operating in Pakistan under Petroleum Concession Agreements. All such remittances may be effected by the Authorized Dealer after satisfying itself about the genuineness of the transaction by reviewing the following documents:

    Request letter from the applicant (Remitter).

    Copy of duly executed valid Concession Agreement (to be submitted once during the validity period).

    Details of Seller’s Working Interest.

    READ MORE: SBP revises manual to facilitate cross border payments

    Copy of valid underlying agreement/contract etc. between Applicant (purchaser) and seller (to be submitted once during validity period) – wherever applicable.

    Form “M” duly filled signed and stamped by the applicant

    Invoices complying the above mentioned underlying agreements, with complete details including quantity, description of goods, price, and conversion rate duly signed and stamped by the seller.

    Verification of each invoice by a designated senior officer of the buying company along with stamp and signature.

    Foreign Exchange allocation /No objection/approval of Ministry of Finance, where applicable.

    READ MORE: SBP revises ‘blocked accounts’ of non-resident Pakistanis under Foreign Exchange Manual

    Undertaking from the applicant to the effect that no payment has been made against the invoice(s) in question. The undertaking can also be made part of the request letter.”

    In case of any exemption from documentary requirements stipulated above, the authorized dealer shall approach Foreign Exchange Operations Department, SBP-Banking Services Corporation Karachi with proper rationale and recommendations.

    SBP revises manual for royalty, franchise, technical fee
  • PPL gets license for large scale mining of Lead, Zinc

    PPL gets license for large scale mining of Lead, Zinc

    KARACHI: The government of Balochistan province has granted Pakistan Petroleum Limited (PPL) for large scale mining of Lead and Zinc, according to a communication received by Pakistan Stock Exchange (PSX) on Monday.

    READ MORE: Pakistan Petroleum discovers hydrocarbons in Sindh

    The PPL said that company had been granted a large scale mining lease for Lead and Zinc, in District Khuzdar, by the government of Balochistan and in this regard a large scale mining Lease Deed had been executed, for large scale mining and establishment of Lead-Zinc processing plant in district Khuzdar, Balochistan over an area covering 30 square kilometers (7,413.16 acres).

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

    The company said that the lease is valid for a term of thirty (30) years and shall be operated by Bolan Mining Enterprises, a 50:50 Joint Venture between PPL and the provincial government.

    The estimated reserves of barite, lead and zinc are 69 million tons as per bankable feasibility by a renowned German Consultant, over a portion of the leased area.

    READ MORE: PPL commences commercial gas production from Shah Bandar Block

    The project would entail open pit mining with an ore beneficiation / process plant.

    Positive cashflows are expected from year 3 while the estimated project life is 32 years.

  • Brother Gas UAE invests $15 million initially in Pakistan

    Brother Gas UAE invests $15 million initially in Pakistan

    ISLAMABAD: A delegation representing Brother Gas UAE has shared with the Board of Investment (BOI) that they will be investing in three phases, with an initial investment of $15 million.

    The first phase will include setting up a plant in M3 industrial area in Faisalabad which will serve the local market and facilitate export to neighboring markets from Pakistan.

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

    It will include industrial gases, with more than 1000 products. They will install an Aerosol Propellant Gas “APG” plant which will be manufacturing the much needed APG within Pakistan instead of importing the same.

    BOI organized a hybrid investment seminar on Monday, 6th December at Pakistan Pavilion, Dubai Expo, which was attended by local & international business community physically and virtually.

    The business community was apprised on investment policies and potential in Pakistan with focus on technology as well as Knowledge economy.

    On the sidelines of this seminar, Secretary BOI, Ms. Fareena Mazhar met with Kashif Maqsood, Managing Director of Brother Gas UAE, one of the leading oil and gas companies in Dubai.

    READ MORE: KSA extends oil on deferred payments to Pakistan

    Maqsood attended the seminar with his five member senior management team and confirmed their plan to set up a bottling plant at Special Economic Zone in Faisalabad.

    Board of Investment has been facilitating the organization previously and has assisted in applying for a Plot in Faisalabad Special Economic Zone (SEZ). BOI’s close coordination with the organization has resulted in the organization announcing its plan to invest in Pakistan.

    The investment will help reduce imports and bring Foreign Direct Investment (FDI) through exports to neighboring countries. This project will also lead to the introduction of refrigerant gasses and ADNOC lubes for the first time in Pakistan. Secretary BOI has termed this potential investment as a major breakthrough for attracting FDI in Pakistan.

  • FBR hikes sales tax rates on petroleum products

    FBR hikes sales tax rates on petroleum products

    The Federal Board of Revenue (FBR) has issued a notification, SRO 1579(I)/2021, announcing revisions in the sales tax rates on various petroleum products, excluding petrol.

    (more…)
  • Customs I&I Multan auctions POL products on Dec 7

    Customs I&I Multan auctions POL products on Dec 7

    ISLAMABAD: The Directorate of Customs Intelligence and Investigation, Multan has announced the auction of a huge quantity of confiscated POL (petroleum) products on December 07, 2021.

    The directorate invited sealed quotations/bids along with 25 per cent earnest money in the form of pay order or bank demand in favor of collector of customs from the oil marketing companies (OMCs) to purchase the same on as is where is basis.

    The directorate will auction about 188,509 liters of high-speed diesel and 70,000 liters of crude oil and hydrocarbon oil.

    As per law 10 per cent withholding tax shall be paid by the successful bidder/offer of the accepted bid amount of the auctioned subject POL products.

    Interested/eligible bidders or offerers (OMCs) may participate in auction by way of submission of sealed tender/offer, in the name of the director of customs.

    The directorate said that the sealed tenders must be submitted up to 1:00PM on December 7, 2021. The tender shall be opened at 2:00PM on the same day in the presence of all participants.

    The highest tender/offer shall be considered for processing of the case and submitted to the competent authority.

    In case of acceptance of the offer, rest of the amount shall be paid by the successful bidder within a period of seven days. In case of rejection of the bid earnest money shall be refunded to the bidder.

    Customs I&I to auction old, used vehicles on Nov 17
  • Domestic oil sales surge by 18% in 5MFY22

    Domestic oil sales surge by 18% in 5MFY22

    KARACHI: The domestic oil sales have surged by 18 per cent to 9.6 million tons during first five months (July – November) of fiscal year 2021-2022 – 5MFY22 as compared with 8.16 million tons in the corresponding months of the last fiscal year.

    Analysts at Arif Habib Limited said that double digit growth was witnessed in all categories; motor spirit, high speed diesel and furnace oil with off take undergoing a jump to 3.81 million tons, 3.74 million tons and 1.78 million tons (amid higher requirement from furnace oil based power plants), up by 11 per cent, 20 per cent and 29 per cent year on year (YoY) against 3.44 million tons, 3.12 million tons and 1.38 million tons in the same period of the last fiscal year, respectively.

    Total petroleum and lubricant sales clocked-in at 1.75 million tons in November 2021, depicting an increase of 2 per cent YoY while down 12 per cent Month on Month (MoM) on account of significant decline in furnace oil volumes which clocked in at 0.18 million tons, down by 46 per cent MoM compared to 0.33 million tons in October 2021.

    The decline in sales volumes has been attributed to power requirement in winter season which is usually lower compared to summer resulting in slowdown in dispatches and increase in prices of motor spirit (petrol) and high speed diesel.

    On yearly basis, sales volumes witnessed a meager growth of two per cent YoY which was mainly led by sales growth in furnace oil and high speed diesel by three per cent and one per cent YoY, respectively.

    Pakistan’s October oil sales highest after May 2018