ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday issued a notification under which the prices of POL products have been reduced drastically with effect from June 16.
The price of motor gasoline (Petrol) has come down by Rs10.46 per litre to Rs89.51 per litre from Rs99.97 per litre.
The price of HOBC has decreased by Rs11.75 per litre, from Rs125.07 to Rs113.32, kerosene oil by Rs5.26 per litre, from Rs94.05 to Rs88.79, High Speed Diesel by Rs6.08 per litre, from Rs105.77 to Rs99.69, Light Diesel Oil (LDO) by Rs5.02 per litre from Rs91.59 to Rs86.57.
Information Minister Qamar Zaman Qaira, who addressed a press conference along with Federal Minister for Petroleum and Natural Resources Dr Asim Hussain, declared that the CNG price had been reduced by Rs4.80 per kg though sources claimed Ogra had earlier recommended Rs7.50 per kg reduction.
Meanwhile, Dr Asim told the press that the gas reserves at Sui and Qadirpur fields would be depleted to zero by 2022 and the government was left with no option but to go for an aggressive value addition in the oil and gas sector to cope with the current and future energy crisis. He said the government had signed the GSPA (gas sales purchase agreement) with Iran and Turkmenistan for IP and TAPI gas line projects to be completed in 2014 and 2017 respectively. The minister said the government was trying to also finalise an agreement for the import of LNG to meet the energy crisis.
He said furnace oil was used for thermal power plants and if it was replaced with LNG, the country will not only save $1 billion per month, the cost of electricity will also come down considerably. The minister, to a question, said that CNG stations would gradually be phased out.
The minister also said that during the tenure of the PPP government, 700-800 million
cubic feet gas per day had been added to the system and in the current month, more than 100 mmcfd gas would also be added. The government will add 1 bcfd gas to the system by end of the current financial year. The minister said that during the Musharraf regime, the gas production was 3.7 bcfd, which has now increased to 4.3 bcfd.
When asked why then the production had not reached 4.7 bcfd with the addition of 1 bcfd, the minister said during the time 15-16 percent gas reserves had depleted too.About the unaccounted for gas (UFG) which Ogra had reduced from 7 to 4.5 percent, the minister said he was also in favour of a decrease in the UFG but in a gradual manner and said a drastic cut in the UFG would prove detrimental for the gas utilities. “We have asked Ogra to hire a consultant for reducing the UFG.”
The information minister said that the government had reduced the POL and CNG prices and extended full relief on account of reduction of POL prices in the international market to end consumers.