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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.

  • PM directs finalizing tight gas policy by next month

    PM directs finalizing tight gas policy by next month

    ISLAMABAD: Prime Minister Imran Khan on Thursday directed authorities to finalize Tight Gas Policy by end of September 2021.

    The prime minister chaired a meeting to discuss the tight gas resources.

    The meeting was attended by Federal Ministers Shaukat Fayyaz Tareen, Hamad Azhar, Asad Umar, Special Assistant Tabish Gohar and concerned senior officials.

    The meeting discussed in detail the potential resources of Tight Gas in the country.

    The meeting was informed that Pakistan is expected to have huge reserves of tight-gas. These reserves could help reduce the country’s dependence on expensive imported LNG.

    The prime minister directed that the Tight Gas Policy be reviewed and finalized by the end of September 2021.

  • FBR reduces sales tax rate on petrol to 10.77%

    FBR reduces sales tax rate on petrol to 10.77%

    In a move aimed at providing relief to consumers, the Federal Board of Revenue (FBR) has announced a reduction in the sales tax rate on the supply of petrol. The new rate, effective immediately, is set at 10.77%, down from the previous rate of 16.40%.

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  • Pak Oxygen invests Rs2.5bn for ASU setup

    Pak Oxygen invests Rs2.5bn for ASU setup

    KARACHI:  Pakistan Oxygen Limited on Monday announced to set up an Air Separation Unit (ASU) with an amount of Rs2.5 billion.

    The company will set up the unit in the northern of Pakistan. This is company’s fifth ASU plant in the country.

    The board of directors of the company approved the investment plan on July 16, 2021. The investment will meet the growing demand of Oxygen in the country. It will meet demand from healthcare and industrial segments.

    The company hoped new plant to come on stream by 2023. It made efforts to meet demand for COVID-19 patients. The company will install ASU plant in Khyber Pkhtunkwha province. The new ASU shall serve the various CPEC related projects in Khyber Pakhtunkhwa province.

    The company approved around Rs10 billion. The largest investment of this is Rs6.3 billion for under construction plant at Port Qasim Karachi.

    The company has three ASU plants in two major cities. These ASU plants have combined capacity of 263 tons per day.

    In February this year company announced investment of Rs417.5 million to set up European technology electrode manufacturing in Karachi.

    Pakistan Oxygen Limited is a leading supplier of industrial and medical gases. It provides pipeline services and welding solutions.

  • Mari Petroleum signs exploration agreement

    Mari Petroleum signs exploration agreement

    KARACHI: Mari Petroleum Company Limited (MPCL) on Monday announced that it has executed a farm-in agreement.

    The company signed the with MOL Pakistan Oil and Gas Co. B.V. for acquisition of significant working interest in Margala Block. The company signed the deal to collaborate resources and efforts to jointly perform exploration activities.

    The Block is situated in the Potwar Basin in the vicinity of Islamabad. The assignment of working interest shall be subject to Government approval.

    This farm-in is part ofMPCL’s aggressive strategy not only to increase its exploration acreage, reserves replacement ratio and maximizing shareholder’s value. it will also meet Country’s increasing energy demand from indigenous resources and lowering the burden of imported fuels on national economy.

  • POL prices increased for next fortnight; per liter petrol up by Rs5.4 to Rs118.09

    POL prices increased for next fortnight; per liter petrol up by Rs5.4 to Rs118.09

    ISLAMABAD: The government on Thursday announced increase in petroleum prices to be implemented midnight with effect from July 16, 2021 for next fortnight.

    The government announced an increase of Rs5.4 to Rs118.09 in price of petrol from Rs112.69.

    Likewise, the prices of high speed diesel increased by Rs2.54 per liter, from Rs113.99 to Rs116.53; kerosene oil by Rs1.39 per liter, from Rs85.75 to Rs87.14 whereas the price of light diesel oil increased by Rs1.27, from Rs83.40 per liter to Rs84.67 per liter.

    The Oil and Gas Regulatory Authority (OGRA) had recommended Rs11.50 increase in per liter petrol, however the Prime Minister, considering to provide maximum relief to the public allowed only Rs5.4 liter increase, said a press statement issued by the Finance Ministry here.

    In this way, the government observed Rs6.10 price hike in the commodity, it added. “The government has been providing maximum relief to the consumers by reducing the price of the petroleum products since April 2021,” it added.

    The statement said that although the international oil prices have been on rise, the government took the decision not to pass on the entire burden of increase to the consumers.

    The rates of sales tax and petroleum levy have been adjusted in a manner that maximum relief is provided to the consumers.

  • FBR drafts rules for warehousing, export of POL products

    FBR drafts rules for warehousing, export of POL products

    ISLAMABAD: The Federal Board of Revenue (FBR) has drafted rules for bonded warehousing and export POL Products.

    The FBR issued SRO 872(I)/2021 on Friday and proposed amendments to Customs Rules, 2001. The FBR invited recommendations on the draft rules from stakeholders before finalizing the rules to make part of the law.

    Following new rule 363A has been suggested regarding bonded warehousing and export of POL products:

     (1) The owner may store any imported POL products in a warehouse and export the same in accordance with rules 363A to 363F.

    (2) At the time of arrival of goods at a port, the owner shall file goods declaration through WeBOC system for in-bonding of the imported POL products submitting the documents as required under the Act.

    (3) The securities in the shape of postdated cheques and indemnity bond furnished by the owner under section 86 of the Act, at the time of warehousing of POL products, shall continue to be in force notwithstanding the transfer of the goods to any other person or firm unless the warehoused POL products are exported by way of supply to conveyances as provisions and stores as provided in section 106 of the Customs Act, without payment of any duties, taxes or levies, as the case maybe.

    Explanation / Note: Since the POL products, to be imported under this scheme, will be shipped or supplied without foreign exchange remittances from Pakistan, on account of cost of goods at the time of their imports, therefore, no Electronic Import Form (EIF) shall be required at the time of filing of GD for their in-bonding. Similarly, no EIF shall be required at the time of export. The owner of any POL products, warehoused in accordance with the foregoing provisions of this rule, may export such POL products as provisions and stores for conveyances proceeding to any foreign territory including by way of direct sale or sale through a third party.

    Explanation / Note: ‘direct sale’ — means that owner makes a direct sale to the owner or charterer of the conveyance and deliver the POL products to such conveyance. ‘Sale through a third party’ — means that the owner will:

    (i) issue sales invoice to a foreign entity other than the owner or charterer of the conveyance; and

    (ii) deliver POL products to a conveyance on the instructions of such foreign entity.

  • Petrol price increases by Rs2 to Rs112.69/liter

    Petrol price increases by Rs2 to Rs112.69/liter

    ISLAMABAD: The government on Wednesday announced an increase in price of petrol by Rs2 to Rs112.69 per liter from Rs110.69 with effect from July 01, 2021.

    A statement said that the price of high speed diesel (HSD) has been increased by Rs1.44 to Rs113.99 per liter from Rs112.55.

    The price of kerosene oil has been increased by Rs3.86 to Rs85.75 per liter from Rs81.89.

    Similarly, the price of light diesel oil has been increased by Rs3.72 to Rs83.40 per liter from Rs79.68.

    The statement said that in order to provide maximum relief to the consumers, the government has maintained the practice of keeping the prices of petroleum products at an affordable level.

    OGRA has been recommending substantial increase in the prices of Petroleum products since 1st May 2021, corresponding to the increase in prices of the petroleum products in the International markets.

    However, keeping in view the welfare of the general public, the government has absorbed the impact of the increase by making adjustments in sales tax and petroleum levy.

    Currently, the petroleum levy rates are at the lowest of last six years.

    During the financial year 2020-21, the government has provided Rs252.41 billion subsidy to the consumers by keeping low the petroleum levy rates against the budgeted Rs. 30/liter on all products.

    It is also worth mentioning that as compared to our regional neighbours, Government of Pakistan is providing Petrol and Diesel at the lowest level rates.

  • Kamran Kamal appointed HUBCO chief

    Kamran Kamal appointed HUBCO chief

    KARACHI: Hubco, Pakistan’s largest IPP has announced the appointment of Kamran Kamal as its new CEO. Kamran has succeeded Khalid Mansoor who led the company for eight years, a statement said on Wednesday.

    Kamran has already been a part of Hubco for the past 6 years as the CEO of Laraib Energy Limited, a hydel subsidiary of the Company. Previously, he held the position of Vice President China Power Hub Generation Company (CPHGC), a joint venture between HUBCO & China Power International Holding (CPIH). Kamran’s appointment as the new CEO (from within the Company) is a testament of confidence of Hubco’s shareholders in its home-grown talent. 

    “Pakistan’s energy landscape is full of possibilities. HUBCO’s unparalleled technical expertise, pioneering approach to business and strategic geographical presence provides us with a unique set of capabilities to realize these possibilities for our country said Kamran Kamal. I am excited to lead HUBCO in transforming our approach to creating long-term shared value without ever losing sight of the future of our society, Kamran added. 

    Kamran is a competent leader with over 18 years of progressive responsibility and leadership experience in energy, infrastructure, commodities, business development and strategy. He has been responsible for large capital projects, building organizational capabilities and for overall business delivery in both management, executive and Board roles. Kamran holds a Masters from Harvard and a BSE in Electrical Engineering from Georgia Tech, USA.

    Previously, Kamran was Commodities Trade Head, Engro EXIMP FZE where he managed Fertiliser, Coal, Oilseeds and Sugar Trading Portfolio. He led the company’s growth into new geographies and commodities portfolio. During his tenure at Engro, Kamran was also involved in major energy & infrastructure projects including Thar Coal Mining & Power Plant, LNG Floating terminal and RLNG based power plant.

    Under Kamran’s leadership HUBCO will focus on retaining its position as a market leader by focusing on renewables, merchant market model for the Power Sector and diversification into sustainable solutions. Kamran’s understanding of the Power Sector, regulatory environment and his experience of closely working with key external stakeholders will strengthen Hubco’s standing in the power sector.

  • NCCPL excludes Hascol Petroleum from list of eligible securities

    NCCPL excludes Hascol Petroleum from list of eligible securities

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Monday excluded M/s. Hascol Petroleum from the list of eligible securities after the stock exchange placed the oil company into defaulter segment.

    The NCCPL said that this is with reference to Pakistan Stock Exchange Notice No. PSX/N-781 dated: June 25, 2021, regarding placement of M/s. Hascol Petroleum Limited (“HASCOL”) in the Defaulter’s segment with effective from Monday, June 28, 2021.

    This event leads to action under Clauses 7A.3.5 and 7B.3.1.4 of NCCPL Regulations, 2015 that has been reproduced below for ready reference;

    “Where a Security that has been quoted on the defaulter’s segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the SLB Market from the date it has been placed on the defaulter segment. However, all open SLB Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.”

    “In case where such Security is reinstated during the review period, trading in SLB Market shall not be allowed during that review period.” (Regulations 7A.3.5)

    “Where a Security that have been quoted on the Defaulter segment of the Exchange and notified to the Company, such Security shall not be made available on MF Market from the date it has been placed on the defaulter segment. However, all MF (R) Transactions shall be released as per the terms and conditions defined in the Margin Financing Agreement between MF Participants.”

    “In case where such Security is reinstated during the review period, trading in MF Market shall not be allowed during that review period.” (Regulations 7B.3.1.4)

    Where a MT Eligible Security that have been quoted on the defaulter segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the MT Market from the date it has been placed on the Defaulter segment. However, all open MT Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.

    In case where such Security is reinstated during the review period, trading in MT Market shall not be allowed during that review period. (Regulations 7C.3.2 (15)

    Accordingly, in pursuance of provisions stipulated in the above referred clauses of NCCPL Regulations, 2015, M/s. Hascol Petroleum Limited shall be excluded from the list of SLB Eligible Securities, MF Eligible Securities and MTS eligible Securities with effect from Monday, June 28, 2021.

  • FBR announces reduction in sales tax rates on petroleum products

    FBR announces reduction in sales tax rates on petroleum products

    ISLAMABAD: Federal Board of Revenue (FBR) has announced reduction in sales tax rates on supply of petroleum products in order to ensure availability of fuel at lower rates.

    The FBR issued SRO 807(I)/2021 dated June 26, 2021 for notifying the reduction in sales tax on petroleum products.

    According to the SRO the sales tax rate on kerosene oil has been reduced to 6.7 per cent from 9.15 per cent. Similarly, sales tax on light diesel oil has been reduced to 0.2 percent from 2.74 per cent.

    However, the sales tax rates on petrol and high diesel oil has been kept unchanged at 17 per cent.

    The government on June 15, 2021 announced increase in prices of petroleum products for next fortnight, which are as follows: MS (Petrol) has been increased by Rs2.13 from Rs108.56 to Rs110.69 per liter, High Speed Diesel was increased by Rs1.79 from Rs110.76 to Rs112.55 per liter, Kerosene (SKO) was increased by Rs1.89 from Rs80.00 to Rs81.89 per liter and Light Diesel Oil was increased by Rs2.03 from Rs77.65 to Rs79.68 per liter.

    FBR sources said that the sales tax rate has been reduced because the government had not passed on the actual increase in petroleum products prices to the general public.