- Dr Musadik added that it was distressing that the ex-government did not procure Liquefied Natural Gas (LNG) cargoes that were available at the reduced rate of $4 per MMBTU (Metric Million British Thermal Unit) two years ago
- He said although the price of crude oil had declined in the world market, the rate of refined fuel did not decrease at the matching ratio.
- He claimed that before leaving the government, the Pakistan Tehreek-i-Insaf (PTI) signed laws that gave the federal government no ability to adjust the gas price set by the Oil and Gas Regulatory Authority (OGRA)
ISLAMABAD: Minister of State for Petroleum Dr Musadik Malik on Thursday said, “The ministry had designed a broader framework under which 50 percent of the country’s total population, including the poorest of the poorest people, would be rescued from the gas price hike.” He claimed that before leaving the government, the Pakistan Tehreek-i-Insaf (PTI) signed laws that gave the federal government no ability to adjust the gas price set by the Oil and Gas Regulatory Authority (OGRA). “We have been working for the last two to three weeks to figure out how to offer relief to gas users after the OGRA informed us about the new rates, which are significantly higher than the previous year because the rate had not been changed for the previous two years,” he added. Musadik Malik added that it was distressing that the ex-government did not procure Liquefied Natural Gas (LNG) cargoes that were available at the reduced rate of $4 per MMBTU (Metric Million British Thermal Unit) two years ago, which now cost $40. “It means that now per LNG cargo cost is around $138 million, which was available at $12.5 million two years back for 2-4 years, but the PTI government did not pay any heed towards buying the entity.” It was beyond explanation that the PTI administration did not arrange LNG when regasification terminals were available, for which the country was paying a “capacity payment,” but which were not used, he continued. He said although the price of crude oil had declined in the world market, the rate of refined fuel did not decrease at the matching ratio.
As the long-term agreements were not signed by the PTI government, he said, now the much-needed gas was not available in the country, even at an increased price, despite frequent tendering in the international market. He expressed regret that the poor parts of the population were utilizing the costly Liquefied Petroleum Gas (LPG), while those with many geezers, stoves, and cooking ranges were using the inexpensive natural gas. He went on to say that the price of LPG was five times that of natural gas. He said that the current admin has kept major pledges made to the IMF. However, it appears that the impact of lower gasoline prices will be passed on to consumers in the coming days, requiring more engagement with Finance Minister Miftah Ismail.
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