Tag: Ministry of Energy

  • Tariff hike of Rs1.72 per unit approved for K-Electric consumers 

    Tariff hike of Rs1.72 per unit approved for K-Electric consumers 

    The Economic Coordination Committee (ECC) has granted approval for quarterly tariff adjustments of Rs1.72 per unit for K-Electric, alongside government guarantees of Rs100 billion for Pakistan State Oil (PSO) and a Rs20 billion credit facility for Punjab’s Green Cooperative Initiative. 

    The ECC session, presided over by Federal Minister for Finance Dr Shamshad Akhtar and attended by other federal ministers and senior officials, addressed various summaries submitted by ministries such as Interior, Maritime Affairs, Energy (Power Division), Energy (Petroleum Division), Poverty Alleviation and Social Safety, and Defence. 

    The decision to adjust the tariff for K-Electric was reached after careful consideration of a summary presented by the Ministry of Energy regarding “Uniform Quarterly Tariff Adjustments for K-Electric Consumers on a par with XWDISCOs 2nd and 3rd Quarterly FY 2023.” 

    Following in-depth discussions, the ECC concluded that the tariff rationalisation through adjustments for K-Electric, aligning with the uniform Quarterly Tariff Adjustment (QTA) guidelines already issued to NEPRA, will be applicable to the consumption of July, August, and September 2023.  

    According to The News, these adjustments are set to be recovered from K-Electric consumers in December 2023, January 2024, and February 2024, respectively. 

  • Pakistan to pay for Russian oil in Chinese yuan, shipping expected in June

    Pakistan to pay for Russian oil in Chinese yuan, shipping expected in June

    According to a senior official from Pakistan’s Ministry of Energy, the country is expected to pay for a test cargo of 750,000 barrels of Russian oil in Chinese Yuan. The cargo is set to dock in Pakistan in June, with a possibility of arrival by the end of May.

    It has been suggested that the Bank of China will play a role in the transactions. However, the exact mode of payment and discount offered have not been made public to avoid backlash from other countries purchasing Russian oil directly from Moscow.

    The test cargo will likely contain URAL crude, which will be refined by Pakistan Refinery Limited. Commercial analysis of Russian crude has been conducted in favour of Pakistan’s economy, but will be further assessed after refining. The estimated shipping cost of the Russian oil is around $15 per barrel, which will be confirmed upon arrival at the Pakistani port.

    Pakistan has reportedly settled on a per barrel price of $50-52, lower than the cap price of G7 countries at $60 per barrel. Pakistani refineries currently import 80 per cent of crude under long-term agreements with ADNOC and Saudi Aramco. However, the remaining 20 per cent provides a cushion to purchase Russian oil under GtG on a long-term agreement to some extent. The government plans to keep some cushion for purchasing crude from the international market, as crude prices can fluctuate.

    Pakistan had initially hoped to obtain Russian crude at a discount close to $50 per barrel, $10 per barrel below the cap price imposed by G7 countries in response to the Ukraine conflict. However, a top official from the coalition government has expressed concern that importing Russian crude at a 30 per cent discount under the GtG agreement may not provide sufficient relief.

  • Energy ministry announces uninterrupted power supply during sehr, iftar and taraweeh in Ramzan

    Energy ministry announces uninterrupted power supply during sehr, iftar and taraweeh in Ramzan

    The Ministry of Energy announced on Wednesday that no loadshedding will take place during sehr, iftar and taraweeh in the holy month of Ramzan, in accordance with the instructions of Prime Minister Shehbaz Sharif.

    The Prime Minister has directed for an uninterrupted supply of electricity during Ramzan, and the ministry has subsequently issued directives to power distribution companies to ensure this.

    The ministry has requested that DISCOS ensure the supply of electricity during sehr, iftar, and taraweeh, with zero load management an hour before and after sehr, and one hour before iftar and three hours after.

    According to Geo, control rooms will be established at the operation circle level to guarantee an uninterrupted supply of power. Additionally, special teams have been formed to address grievances at division and sub-division levels.

    In the event of transformer failure, additional transformers and trolleys will be made available. Today (Wednesday), the Central Ruet-e-Hilal Committee will convene in Peshawar for the sighting of the Ramzan ul Mubarak 1444 AH moon.

  • Gas supply only three times a day?

    A few days ago, the news was doing rounds on social media that gas will be supplied to consumers only at certain times in winter.

    According to news shared on the Internet, Sui Northern Gas and the Ministry of Petroleum have planned to provide gas to consumers in Punjab and Khyber Pakhtunkhwa three times a day, during breakfast, lunch and dinner time.

    Ministry of energy took to Twitter to clarify that the news circulating is not true.

    “Misleading news is being shared on different TV channels that gas will be provided to domestic consumers only three times a day. No such decision has been taken by the Ministry of Energy. However, the ministry has directed Sui Northern officials to ensure supply of gas to domestic consumers during the meal timings,” the ministry tweeted.

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  • No more load shedding in Pakistan from today: Ministry of Energy

    No more load shedding in Pakistan from today: Ministry of Energy

    After long hours of power outages across Pakistan in the month of Ramzan, the Ministry of Energy has announced that power load-shedding has been reduced to zero from 5am today (Monday).

    In a tweet, the ministry said, “As per the promise made by Prime Minister Shahbaz Sharif, load shedding in the country has been reduced to zero from 5am on May 1. The ministry has worked hard to add more than 2500 Megawatt of additional power to the national grid system.”

    “The ministry is constantly striving for uninterrupted power supply during the Eid holidays and beyond”, the tweet further said.

    In April, PM Shehbaz took notice of the situation and directed the concerned departments to reduce power outages by May 1. He said until the problem is resolved, he would not leave for China and would not allow anyone to relax.

    Last month, due to higher demand and reduced generation due to fuel shortages and reduced gas supplies to power plants, Pakistan experienced 6-10 hours of electricity load-shedding in various areas.

    As of April 25, generation was 17,976 Megawatt (MW), compared to the demand of almost 21,000 MW, indicating a significant discrepancy between demand and generation.

  • SAPM for power Tabish Gauhar resigns due to problems in ministry

    SAPM for power Tabish Gauhar resigns due to problems in ministry

    Special Assistant to the Prime Minister (SAPM) on Power and Petroleum Tabish Gauhar has reportedly stepped down from his position after almost one year of his appointment.

    According to sources, Prime Minister Imran Khan asked for the former’s resignation as he [Imran Khan] and the Minister for Energy Hammad Azhar weren’t evidently happy with his performance, reports Samaa News.

    “After a year of public service, I’ve decided to call it a day to return to my family. It’s been the privilege of a lifetime to serve the country, to the best of my abilities, in an honorary capacity. I shall remain indebted to the PM for giving me this opportunity,” Gauhar tweeted.

    While publicly accepting the numerous challenges in the energy sector, he added: “No doubt that under the able leadership of Azhar, the MOE [Ministry of Energy] team will continue to stay the course on structural reforms.”

    According to Geo News, the development comes after Gauhar and Federal Minister for Maritime Affairs Ali Zaidi developed rifts on the controversy sparked over the Engro LNG terminal’s dry-docking. Other disagreements included the Pakistan Stream Gas Pipeline (PSGP) project and Gauhar’s stance in favour of laying down the North-South Pipeline with the help of local gas companies.

    Last month, he had written a letter to Hammad Azhar, pointing out multiple challenges in the energy sector.

    Gauhar had resigned from his post earlier this year but at the time his resignation had not been accepted. Later, Gauhar had lodged a complaint with the premier, pleading that two cabinet members were interfering in the affairs of the Ministry of Energy.

    After this news, a total of 11 Special ministers have resigned so far.

    Zulfi Bukhari as SAPM on Overseas Pakistanis

    Dr Ishrat Hussain as SAPM on Institutional Reforms and Austerity 

    Tabish Gauhar as SAPM on Power and Petroleum

    Lt Gen Asim Bajwa as SAPM on China-Pakistan Economic Corridor (CPEC) affairs

    Firdaus Ashiq Awan as Special Assistant to Punjab Chief Minister on Information

    Dr Zafar Mirza as SAPM on Health

    Tania Aidrus as SAPM on Digital Pakistan

    Shahzad Qasim as SAPM on Coordination of Marketing and Development of Mineral Resources

    Dr Waqar Masood Khan as SAPM on Finance and Revenue

    Iftikhar Durrani as SAPM on Media Affairs.

    Yousaf Baig Mirza as SAPM on Media Affairs.

  • PM Khan informed about a serious rift in his cabinet

    PM Khan informed about a serious rift in his cabinet

    Serious disagreements between cabinet members have led to problems at the Ministry of Energy and Petroleum. Prime Minister (PM) Imran Khan has been informed about the current rift, reports The News.

    Important facts were brought to light in Geo News Programme, ‘Aaj Shahzeb Khanzada Kay Sath’. According to reports, the Ministry of Energy and Petroleum is worried about the interference of Asad Umar and Ali Zaidi.

    Asad Umar, Minister of Planning Commission and Special Initiatives heads the Cabinet Committee on Energy (CCOE), and Ali Zaidi, Federal Minister for Maritime Affairs, is its member.

    Reportedly, Special Assistant to PM Khan Tabish Gauhar has lodged a complaint with the premier, pleading that the two cabinet members were interfering in the affairs of the Ministry of Energy.

    Sources say that Hammad and Tabish are in favour of using the full capacity of the existing terminals. However, they are being pressured in the cabinet to sign the Sui South gas pipeline agreement with the new terminals rather than the old Liquified Natural Gas (LNG) terminals.

    Asad Umar gave a tough time to the Energy Ministry for arranging LNG at a higher cost and for the dry docking of the Floating Storage Regasification Unit (FSRU) at the Engro Terminal. 

    The decisions forced the country to face a gas-electricity crisis, subjected the government to the wrath of the Opposition, and triggered a backlash from the masses.

    In the CCOE meeting, Finance Minister Shaukat Tarin, along with Umar and Zaidi, objected to the delayed dry-docking from June 29 to July 5 and why it wasn’t done earlier in 2019. Tarin wanted an inquiry in this regard and ordered Railway Minister Azam Swati to lead the inquiry. Sources have revealed that Tabish was trying to put an end to the inquiry.

    However, Gauhar is currently not attending the CCOE meetings. Sources said that despite protests from Gauhar, the inquiry will go ahead since it is part of the written procedures of the CCOE and has been ratified by the federal government.