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.

GIZ Pakistan organizes certificate award ceremony

LAHORE: Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) Pakistan has organized certificate award and showcasing programme achievements ceremony under clean power purchasing development project.

A certificate award ceremony for Master Trainers in Entrepreneurial Skills trained at the Professional Development Center of National University of Science & Technology (NUST) Islamabad under the Clean Power Purchasing Development project. The project is being implemented by Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) as part of the DeveloPPP.de Programme of German Federal Ministry for Economic Cooperation & Development (BMZ).

Chief Operating Officer TEVTA Punjab, Zaheer Abbas was the chief guest at the occasion who distributed the certificates to the master trainers along with Ms. Iris Cordelia Rotzoll, Head of Programme TVET Sector Support Programme GIZ, Muhammad Ishaq Bhatti, Chairperson Solar Quality Foundation (SQF), Faisal Mahmood, Regional Coordinator (Punjab) and DV Clean Power Purchasing Development Project, and Haseeb Saadat CEO Allied Solar Private Limited & local partner of Power One for One Germany. Other senior officials and heads of institutes from Punjab TEVTA were also present at the occasion.

The DV Clean Power Purchasing Development Project, Faisal Mahmood presented the programme achievements over the last three years. The project has trained 37 Master Trainers on technical skills related to design, installation, O&M of solar PV plants, 30 Assessors in CBT&A to support implementation of National Vocational Qualification in Solar PV, and 40 TVET Professionals from TEVTA Punjab and PVTC on Entrepreneurial Skills to promote entrepreneurship in the Solar PV sector. A 10-kW grid-connected pilot solar PV plant was installed with the support of project partner Power One for One at TEVTA Government Technical Training Institute, Gulberg Lahore for education purpose.

Addressing to the participants, the Head of TVET Sector Support Programme GIZ, Ms. Iris Cordelia Rotzoll, stated that all these efforts not only lead to a new beginning and small steps toward sustainable energy generation and management, but also open avenues to promote the trend of green skills in Pakistan. The master trainers, trainers and assessors trained in Solar PV technology will create a pathway for internal and external buy-in among more and more TVET trainers and managers.

Speaking at the ceremony Zaheer Abbas appreciated the role of German cooperation for promotion of clean energy in Pakistan through DeveloPPP Programme. He highlighted the fact that promotion of green skills is inevitable to fight the global climate change and save the environment while also conserving the natural resources. He expressed his resolve that master trainers trained under the project will be utilized to support implementation of solar PV training courses in Punjab and increase the quality & access to trained human resource for solar companies.

June 28, 2022
Govt urged to minimize reliance on LNG import

ISLAMABAD: As Pakistan is facing with severe natural gas shortage for the last couple of years, it has started relying heavily on Liquefied Natural Gas (LNG), however, the government needs to explore other energy sources to save environment as well as financial spending on the LNG import.

There are other green energy options like solar and wind that can provide cheap environment-friendly energy sources and the country needs go for these options.

This was the crux of one of the two reports “Gas Monitor – Pakistan” & “Tabeer LNG Terminal, Socio-Economic & Environmental Analysis” launched by the Indus Consortium held about the gas provision as an energy source in the country at a ceremony here on Friday.

The reports launch was attended by representatives of academic institutions, member of GROW Green Network, which is an umbrella of environmental organizations of Pakistan working for the promotion of renewable energy, independent researchers, member of Renewable Energy coalition Pakistan and alliance for climate Justice and clean energy.

Sharing findings of the Gas Monitor – Pakistan report, Dr. Amanullah Mahar, Director, and Center for Environmental Sciences, University of Sindh, Jamshoro, said that since LNG, fossil gas is a very high carbon intensive fuel and cannot be called “transition” fuel source to a cleaner energy system.

He explained that fossil gas (methane) can be leaked from the re-gasification, transport, and consumption and processing of it. After carbon dioxide (CO2), methane is the second most abundant anthropogenic greenhouse gas and responsible for 20% of worldwide atmospheric emissions. The methane is 25 times more potent than CO2 at absorbing atmospheric heat.

While presenting findings of another report on “Tabeer LNG Terminal, Socio-Economic & Environmental Analysis”, an independent sustainability consultant Fatima Fasih said that keeping the global LNG markets and their volatility in consideration, it is clear that LNG is no longer a financially-viable source of fuel.

She said, “Instead of focusing on short-term monetary gains and quick gains in energy for the economy, public and private institutions should focus on building stronger energy security within Pakistan and develop a greener economy through a just and equitable energy transition towards renewable energy.”

She suggested that solar and wind power have shown remarkable success in Pakistan from an economic perspective and should be invested in to increase their ratios within the country’s energy mix and help the country transition towards a just and sustainable energy transition.

Iqbal Hyder, Board member of Indus Consortium and Executive Director Laar Humanitarian Development Program (LHDP), while concluding his remarks, said that the livelihood of population inhabiting along the coastal areas is directly dependent on mangrove forests.

He said cautioned that any additional construction or industrial operations in these areas will exacerbate the declining socio-economic conditions of the local communities. “We need to recognize the valuable indigenous knowledge for local fishing and rejuvenate the current worsening fishing populations.”

The Gas Monitor – Pakistan report focuses on the case of the development of Pakistan’s gas sector, especially LNG. It discusses how increasing reliance on LNG is posing challenges to the country’s economy on one hand and the release of methane gas emissions is deteriorating the environment on the other.

The monitor also comes up with a set of recommendations that present a potential way out of this entrenched dependence and its associated impacts.

An analysis of the socio-economic and environmental impacts of the Tabeer LNG terminal, Port Qasim, Karachi, investigates the Environmental Social Impact Assessment (ESIA) and explores the Corporate Social Responsibility criterion with a set of recommendations.

Indus Consortium is an umbrella organization of over 60 civil society organizations across Pakistan, working on DRR, climate change, green development, and green finance. It also envisions a democratic and equitable society where all citizens enjoy equal economic, cultural, and political rights, with a mission to work for local communities to enhance their resilience and participation in green development.

June 24, 2022
OGDCL discovers oil, gas reserves in Sindh

KARACHI: Oil and Gas Development Company Limited (OGDCL), a public limited company of Pakistan with 75 percent share of the government, on Wednesday announced a discovery of oil and gas reserves in Tando Allha Yar, Sindh Province.

The Joint Venture of Nim Block Comprising OGDCL as Operator (95 per cent) and Government Holdings (Private) Limited (GHPL) (5 per cent carried) has discovered oil and gas from exploratory well namely Nim East- 1 located in District Tando Allah Yar, Sindh Province, the company said in a statement.

READ MORE: OGDCL declares over 63% net profit for 1HFY22

Nim East-1 was spudded in on March 21, 2022 as an exploratory well by using OGDCL’s in-house expertise and in close collaboration with GHPL team.

The well was drilled down to 2573m. Based on the results of wireline logs interpretation, Drill Stem Test-1 in the Basal Sand has tested 1400 Barrels of Oil per Day (BOPD) and 5.02 Million Standard Cubic Feet per Day (MMSCFD) Gas through choke size 32/64” at Well Head Flowing Pressure (WHFP) of 1820 Pounds per Square Inch (psi).

READ MORE: OGDCL declares Rs33.63 billion net profit in first quarter

“The said discovery is the 11th discovery in Nim Block which shows the commitment of Nim Joint Venture Partners to exploit the hydrocarbon potential of the block besides reflection of aggressive exploration strategy,” according to the statement.

Discovery will help in mitigating energy demand and supply gap from indigenous resources and will add to the hydrocarbon reserve base of joint venture entities and the country.

READ MORE: OGDCL discovers huge gas deposits in Balochistan

June 22, 2022
FPCCI shocked over petroleum price hike

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday expressed shock and dismay on massive increase in prices of petroleum products.

FPCCI Acting President Shabbir Hassan Mansha in a statement expressed his shock and awe at the astronomical increase in the prices of petrol and diesel.

READ MORE: Pakistan braces for worst food inflation: FPCCI

Increase in petrol price by Rs. 24.03per liter will crush the masses and Rs. 59.16per liter in diesel price will have a multiplier effect on goods transportation costs; which will drive the commodities and food supplies prices even further, he added.

Acting FPCCI Chief maintained that it is imperative to weigh in the impact of the prior petroleum prices as well; because even before the latest increase prices were also raised twice in a short time span of merely two weeks. Therefore, we are faced with a third major raise in the prices of petroleum products within 20 days – cumulatively raising the petrol price by Rs. 84 / liter, i.e. 56 percent and diesel price by Rs. 144 per liter, i.e. 83 percent.

READ MORE: FPCCI demands fixed tax regime for retailers

Shabbir Hassan Mansha has apprised that a massive goods transportation crisis is in the offing as there is no way the transporters can absorb 83 percent raise in the diesel price. He has called upon the government to act and act fast.

Shabbir Hassan Mansha also pointed out that the grapevine is that the government is also mulling the proposal to re-impose petroleum development levy (PDL) and the business community is not sure where this unpredictable, aggressive and anti-business upward price spiral will stop.

Shabbir Hassan Mansha emphasized that the real impact of the petroleum prices will reflect in consumer price indices in 4 – 8 weeks and the government should swiftly come up with a protective mechanism for the small & medium enterprises (SMEs); else the skyrocketing increase in cost of doing business will push the country towards historical bankruptcies in the SMEs and the resultant unprecedented unemployment.

READ MORE: FPCCI demands CNIC condition withdrawal

Acting FPCCI Chief also expressed his profound concerns over massive electricity tariff hike of Rs. 7.91 / kWh; resulting in Rs. 24.82 / kWh base tariff for the year 2022 – 23, while it was Rs. 16.91 / kWh for the outgoing year 2021 – 22. It was a rate hike of a staggering 47 percent by NEPRA; and, it will jolt the cost of doing business and ease of doing business indices.

Additionally, rumors are rife that there will be even further raise in the electricity tariffs; and, the combined effects of petroleum, electricity and gas prices will make businesses unsustainable and unviable, he added.

READ MORE: FBR urged to wave further tax on providing CNIC number

Shabbir Hassan Mansha has extended FPCCI’s full support from the platform of the apex body to kick start a consultative process between the government and all the stake holders to work out some sort of operational contingencies under the prevailing cost of doing business crisis.

June 16, 2022
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