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.

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.

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.

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.

Govt expresses inability to cut levy or fix GST

ISLAMABAD: The ministry of finance and the Federal Board of Revenue have expressed their inability to reduce petroleum levy or fix general sales tax on petroleum products, as recommended by the expert committee on oil pricing mechanism constituted by the Supreme Court for providing relief to consumers.

Sources told Dawn on Wednesday that after consultations with the refining industry, a committee of experts led by Petroleum Secretary Mahmood Salim Mahmood had informed the finance ministry that the only way to provide any long-term relief on oil prices was to fix per litre general sales tax on petroleum products instead of 16 per cent fluctuating rate and a reduction or elimination of petroleum development levy (PDL). The apex court had termed the levy a double taxation.

Call for probe into Qadirpur gas field work delay

ISLAMABAD: The petroleum ministry has called for an investigation into a delayed action by the Oil and Gas Development Company in installing compression facilities at the Qadirpur gas field despite government approvals about 10 months ago, putting 20 per cent of the country’s gas production at risk.

Sources in the petroleum ministry told Dawn on Friday that the ministry had asked the OGDCL management through its representative on the board of directors and formal communication to hold an investigation as to why the compression facilities had been delayed and fix responsibility for the failure.