After inflicting billions of losses: Petroleum ministry attempts to set right its wrongs

ISLAMABAD: After floating tenders very late for purchase of LNG [liquefied natural gas] for the winter season and inflicting billions of rupee losses on the national economy, it seems the petroleum ministry has started making attempts to set right its wrongs, committed in the near past.

According to Geo News programme ‘Aaj Shahzeb Khanzada Ke Sath’ on Friday, the ministry published an advertisement in the newspapers on December 31, inviting bids for supply of LNG for the month of April 2021. Earlier, Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Babar continuously denied any mistake in the purchase of LNG, and inflicted over Rs35 billion losses on the national economy by purchasing expensive LNG through bidding in the winter season. No suppliers showed interest in the ads, published by Pakistan, for supply of gas in first 20 days of January. And record expensive bids were received for two cargoes for February. The petroleum ministry also provided wrong figures to the cabinet and the prime minister about purchase of the gas.

However, now the ministry admitted that the demand increased three times in winter and it was a mistake not to purchase the commodity well in time. According to the ad published on Dec 31, bids are invited for supply of LNG on April 5-6 and 19-20. The programme host asked Prime Minister Imran Khan to ask the petroleum ministry as well as SAPM Nadeem Babar why the process for purchase of LNG for winter season was not launched in summer season when it was available for the lowest prices.

Shahzeb said the government got LNG in December 2019 on average rate of 10.7 per cent and oil price in international market was $62. Now the government is telling that the PML-N’s long-term agreements are 13 per cent. The petroleum ministry says the LNG spot purchase is possible only at the time of demand. It says it was already known that the demand in winter would be three times higher than summer.