July 7, 2022 (MLN): The Cabinet’s Economic Coordination Committee (ECC) has approved the proposed revision of consumer gas sales prices with the aim of further reducing gas tariffs for export and non-export industry/captive power.
Petroleum Division has submitted a summary of natural gas sales prices for fiscal year 2022-23. It was alleged that since FY 2015-16, gas prices have not been revised in accordance with revenue requirements set by OGRA, according to a press release issued today.
This resulted in the accumulation of revenue shortfalls/tariff differentials of Rs 547 billion as of March 2022.
Likewise, the circular debt of the gas sector remained at Rs 299 billion in June 2018, rising to Rs. 1232 billion as of March 31, 2022. To overcome revenue losses, contain circular debt in the gas sector, support the supply chain and invest in exploration and production, Petroleum Division has established broad principles/parameters for reviewing the category-wise gas sales prices for consumers.
The ECC approved the proposed revision of consumer gas sales prices with the aim of further reducing gas tariffs for export and non-export industry/own energy.
In addition, the Ministry of Industry and Production has submitted a summary on the continuation of PM’s aid package, 2020, the Sasta Atta initiative for KPK and expansion of Utility Stores network in Pakistan.
The ECC approved the continuity of distribution of subsidized Atta under the Prime Minister’s Sasta Atta initiative at 1,200 additional outlets in KPK for the two months from July 1 to August 31, 2022 with further instructions to complete the full distribution at ECC’s next meeting. mechanism for the distribution of subsidy packages through the USC.
In addition, the Ministry of Industry and Production has submitted another statement on the provision of funds to HEC to release the storage amount. The ECC allowed funds in the form of a grant of Rs96,873 million that had already been released as a loan to HEC following the ECC’s decision of November 22, 2021.
The ECC also approved funds amounting to Rs 20.085 million in the form of a grant and authorized its allocation through a technical supplementary grant to the Ministry of Industry and Production. The funds have already been approved by the ECC in its decision of March 30, 2022.
Furthermore, the ECC has instructed the Privatization Commission that in the future all obligations may be stated in contracts between buyers and sellers of privatized entities.
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