Power, petroleum ministries to be merged

A employee installs a new electricity tower in Karachi. -AFP File Photo

ISLAMABAD: With the oil import bill estimated to increase by about 300 per cent to $38 billion by 2015, the government has concurred with the Friends of Democratic Pakistan (FoDP) to merge the ministries of power and petroleum and their sectoral regulators for an integrated solution to the energy crisis.
The government has also agreed to substantially increase power tariff for domestic consumers using over 300 units per month to bring it on a par with the average tariff for industrial and commercial consumers.

Petrol prices to further increase in May

KARACHI: Sources from the Ministry of Petroleum confirmed on Tuesday that petrol prices were set to increase further in the month of May. This announcement comes at a time when commodity prices along with electricity tariffs have gone up, and the country is facing a major power crisis.
 

Oil below $84 ahead of inventory data

LONDON: Oil prices hovered below $84 a barrel on Wednesday as weak equities and a stronger dollar offset upbeat sentiment fuelled by a resumption of European air travel, while investors awaited key US government stocks data.

Speculation driving oil prices: Qatar minister

DOHA: Qatar’s oil minister said on Tuesday that crude’s recent rally is driven mainly by speculation, not a shortage of supply, and dismissed the likelihood that OPEC would hold a special meeting to re-evaluate current production levels.

Crude prices have shot up 24 per cent since early February, building on growing investor confidence that the world’s nascent economic recovery will help fuel demand for oil. On Tuesday, the US benchmark crude futures contract for May delivery was hovering around $86 per barrel in electronic trading on the New York Mercantile Exchange, near its 18-month record high.

Oil surges to 18-month high

NEW YORK: Oil prices surged to 18-month highs on Monday, after data on Friday showed the United States added the most jobs in three years, boosting prospects for economic recovery in the top oil consumer.

US payrolls rose by 162,000 last month, the fastest rate in three years, Labor Department data showed on Friday. The US service sector grew in March at its fastest pace in nearly four years while pending home sales also rose, according to the ISM industry survey and a National Association of Realtors report on Monday.

Reliance to tighten grip on world fuel markets

‘Plants may run at more than 100 per cent capacity in 2010’

NEW DELHI/SINGAPORE: India’s top privately run refiner Reliance is expected to raise crude oil imports by about 22 per cent this year as it ramps up production at its giant complex, further stamping its mark on world markets.

To maximise profit margins with its sophisticated refining capability, Reliance Industries is also set to limit African crude imports this year in favour of Middle East grades, if light crude prices continue to strengthen against heavy-sour grades, traders and analysts said.

Another wave of price surge feared next month

ISLAMABAD: People are set to face another wave of price surge as the government is reported to have decided to allow about 5 per cent increase in prices of petroleum products and more than 16 per cent hike in electricity tariff from April 1.
Already reeling under a double-digit inflation of over 11 per cent, particularly driven by an increase in prices of essential food items and energy, consumers are finding it difficult to absorb price shocks with their income remaining static because of negligible economic growth. As a result, the budgeted target of containing inflation within single digit is unlikely to be achieved, sources in the government told Dawn.

Petroleum ministry to offer new exploration blocks in June

KARACHI: The Ministry of Petroleum will offer new blocks in June to expedite exploration of oil and gas reserves as the country fights severe energy crisis, Secretary Petroleum, Kamran Lashari, said on Thursday.

The blocks will be offered to local and international exploration production companies, just months after 40 leases were auctioned under the new petroleum policy, he said here on sidelines of Shell Eco-Marathon’s launching ceremony.

Opec to keep output at current levels

 RIYADH: With crude markets undergoing a massive transformation Opec had little option but to maintain output at current levels. As prices drift downwards, the month-long rally in the crude markets is finally subsiding.
The correlation between financial markets and crude, too, continued to impact the process. Strengthening dollar and the worries on the state of the Greek economy with its drag down effect on the global scenario – all cornered the crude markets to finally wink.

Shell, PetroChina set gas exploration deal

BEIJING: Royal Dutch Shell PLC said on Tuesday it had agreed to explore for natural gas with China National Petroleum Corp in the southwestern province of Sichuan, the second deal between the companies announced this week.

Shell Chief Executive Peter Voser told a news conference in Beijing that Shell and CNPC unit PetroChina Ltd had signed a 30-year contract to jointly develop and produce natural gas in Sichuan. Shell, Europe’s largest oil company, said a production-sharing contract has been sent to China’s central government for approval, but Voser would not reveal the terms of the deal or when approval was expected.

July-Feb: Govt earns Rs214bn from petroleum sector

ISLAMABAD: The government earned about Rs214 billion on lower oil import bill and collection of taxes on the sale of petroleum products in the first eight months (July-Feb) of 2009-10, official data showed.
Of the total Rs214 billion, the government saved about Rs55.5 billion on oil imports because of lower international prices despite higher import of refined petroleum products and lower crude imports.

A sum of Rs158 billion was collected in the eight months as different taxes on the sale of petroleum products.

Oil transport charges up 12.5pc

By Farhan Zaheer

KARACHI: Petroleum Ministry on Monday raised petroleum transportation charges by 12.5 per cent following a strike call by oil tanker owners who were demanding 15 per cent increase in transportation charges.

Oil Tankers Association Chairman Yousuf Shahwani told The News that the federal minister has informed the tanker owners that the government has decided to allow 12.5 per cent rise in transportation charges against the 15 per cent increase demanded by the association.

PSO floats tenders to buy 750,000 tons furnace oil

 KARACHI: Pakistan State Oil (PSO) has issued tenders for purchasing 750,000 tons furnace oil.

PSO sources said purchase transaction for 585,000 tons furnace oil will be made on immediate basis while the final decision for purchase of 130,000 tons oil will be made after receiving the bids.

The purchase of furnace oil in such a large quantity is being made for meeting the requirement for January-February during which use of furnace oil for power generation increases.

Business Refineries seek high margin on petroleum products

ISLAMABAD: Oil refineries in the country may seek higher margins on petroleum refining in the first meeting of Oil Pricing Formula Review Committee scheduled to be held here on Thursday.

A presentation for the committee said that the refinery sector is on the verge of collapse and needed immediate support from the government to bail out the sector from continuous losses, sources told Dawn.
The committee has been formed by Supreme Court to suggest amendments to the existing oil pricing formula before Dec 24.

The committee is headed by the secretary of petroleum, and has five members from oil refineries besides secretaries of finance and industries.