News
Friday, July 01, 2011
No CNG for Punjab three days a week* Supply to CNG stations in Sindh to remain suspended for two days
* ECC delays raise in gas prices
* Government plans to equalise CNG price with petrol’s
Staff Report
ISLAMABAD: The Economic Coordination Committee (ECC), on Thursday, approved a summary on natural gas load management policy proposing curtailment of compressed natural gas supply to CNG stations for three and two days a week for the provinces of Punjab and Sindh, respectively.
Gas saved through the proposed curtailment would be used for power generation in Sindh and to facilitate the fertiliser, industrial and power sectors in Punjab on equitable basis so that consistent supply of electricity could be ensured.
During its meeting with Federal Minister for Water and Power Naveed Qamar in the chair, the country’s highest economic forum, while accepting the economic rationale for an increase and removal of distortion in gas tariff, deferred the proposal for the next three days for discussion at the cabinet level or with the prime minister.
After much deliberations and discussions on the Uniform Natural Gas Load Management Policy proposed by the Ministry of Petroleum and Natural Resources to the ECC, it was decided that gas supply to two independent power producers (IPPs) would continue for the next five months, while the other two would be asked to resort to other fuels on which the price differential would be given to them.
The ECC also allowed gas-based IPPs to switch over to back-up fuel (high seed diesel) during the period when gas would not be available to them and the NEPRA would allow higher tariff for them to recover additional power generation cost from the public sector distribution companies and subsequently from consumers. Switching over of all gas-based IPPs on HSD would put an additional burden of Rs 125 billion annually on consumers of all categories.
The federal government also plans to equalise CNG price with that of petrol in phases and this has also been included in the gas price rationalisation plan. Official sources said that at present, there was a huge difference between prices of petrol and CNG and bringing CNG price at par with petrol would put an additional burden on consumers using CNG as transport fuel.
The ECC accorded no-objection certificate to the Ministry of Petroleum and Natural Resources for the award of Uch-II development project to be undertaken by the Khan Research Laboratories (KRL).
The summary for this project was earlier submitted to the prime minister who desired that the same might be discussed at the ECC for a decision. Additional security issues for the power project was also approved by the committee. The ECC, in order to extend relief to the people during the upcoming month of Ramazan, accepted a summary proposed by the Ministry of Industries which sought a special subsidy upto Rs 2 billion to ensure uninterrupted availability of essential food items, including flour, ghee, cooking oil, pulses, gram and dates, at reduced prices at Utility Stores across the country.
On the summary moved by the Ministry of Petroleum and Natural Resources, the ECC approved furnace oil blending in Pakistan to acquire blending technology for socio-economic benefits, additional employment opportunities and increased investment in the oil sector. It may be mentioned here that this is for the first time, the blending of furnace oil technology will be introduced in country.
This was the first meeting of ECC after the approval of federal budget 2011-12, by parliament, which discussed at length more than twelve agenda items, and was attended by the federal ministers and secretaries of the ministries concerned.
Courtesy www.dailytimes.com.pk