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Wednesday, June 23, 2021

Circular debt in petroleum sector reaches highest level of Rs 421 bn: Asim

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Islamabad: Federal Minister for Petroleum and Natural Resources Dr Asim Hussain has said that the circular debt of petroleum sector has touched the figures of Rs 421 billion and government is taking steps on war footing basis to reduce it.
On Monday he submitted his written reply in the National Assembly Secretariat in response to the questions asked by MNAs in which he said that the establishment of three new oil refineries including Byco Petroleum Hub, Trans Asia Refinery Port Qasim and Khalifa Coastal Refinery is under process which would not only enhance the petroleum production in the country but also diminish the import bill. After completion they will produce 470,000 barrel oil per day.

He said that PSO has to pay the debt of Rs 104 billion to different oil refineries, whereas these refineries have to owe Rs 103 bn to OGDCL, PPL and GOP. Giving the break up of these payment he said that PARCO has to pay Rs 16.70 billion wheras PRL has to pay Rs 14.90 billion, NRL will pay Rs 12.37 billion , ARL has debt of Rs 46.70 billion and OSCOR Oil Refinery will pay Rs Rs 12.42 billion to oil exploration companies .

He told the National Assembly that the natural gas worth more than Rs 1.51 billion was steal in the country within just one and half year.He said that the work on Pak Iran gas pipeline has been commenced due to which some 750 MMCFD natural gas would be increased by which 400 mw of electricity could be produced. “The total production of crude oil of the country is 65333 barrel per day, which is only 15 percent of the total demand” , he added

Dr Asim said that Prime Minister during energy summit presented a comprehensive plan to reduce circular debt but the Finance Ministry has not released Rs 50 billion yet in this connection. He said that government give funds to PEPCO instead of subsidies on electric tariff . The total amount recovered from PEPCO is Rs 160 billion against outstanding amount of Rs 210 billion on account of supply of oil from financial year 2010 to March 2011. He said that step are being taken to grant cash fund to WAPDA and PEPCO to reduce the difference of the income and cost of power production.

He said that Ministries and Petroleum and Finance are working together to resolve energy related issues. Approval has been given to give Rs 37 billion to PSO by 15 June 2011 . In addition to this Rs 10 bn would also be given to the company on monthly basis till June 2012, which would be used to reduce circular debt.

Responding a question he said that LPG producing and marketing companies have been asked to fix the price according to clause 18 of LPG Rules 2001 so that the support price may be strengthened for the consumers.

He said that so far petrol worth of Rs 81.94 billion and diesel of Rs 417.77 bn was imported to the country since 2009. He said that 28551 MMCFD natural gas was provided to CNG stations in 2010 whereas Rs 1871 million were recovered from thsee CNG pumps for supply of the gas. He said that some 26406 old domestic gas meters were changed in 2011.-Online

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