Ijaz Kakakhel Islamabad
A legislative body of Upper House of Parliament on Wednesday directed the ministry of petroleum to provide detail of urea and DAP production by fertilizer companies, which according to them the companies failed to provide sufficient quantities despite of getting subsidize gas to them.
The directions were issued during Senate Standing Committee on Petroleum, which was held at Parliament House with Senator Mohammad Abdul Qadir in Chair. Chairman of the committee was of the view that fertilizer companies have failed to cut the shortfall of urea and DAP despite getting gas at subsidized rates. He directed the ministry to provide details of fertilizer produced by these companies against the gas.
The Committee deliberated on the Urea shortfall in the country. Abdul RasheedJokhi, DG Gas, stated that Pakistan’s daily consumption stands at 4000 mm cfd against the production of 3000 mm cfd. However, local consumers consumed 950 mm cfd, and almost 750 mm cfd has been utilized by Fertilizer companies, namely FFC and Engro, with a cutoff of 350 mm cfd and 250 mm cfd.
Moreover, approximately 85% of gas utilized by fertilizer companies has been provided by Marri Petroleum, and 15% has been provided by other companies. Senator Abdul QadirQadir maintained that the energy crisis is one of the biggest crises facing the country, resulting in a $32 billion import bill. He recommended that the ministry should initiate work on newly discovered sites to minimize this crisis.
Moreover, the committee discussed the issue of levying flat rates for gas consumers in Balochistan. DG Gas informed that the same tariff rates have been charged to all consumers across the country. However, consumers located in cold regions witnessed an increase in gas charges compared to consumers in hot regions due to a substantial increase in gas usage in winter.
Senator Mohammad Abdul Qadir recommended that gas rates should be relaxed for consumers in cold areas during the winter season to allow them to use gas for their basic necessities.
Furthermore, the Senate body highlighted the news of a recent increase in gas tariffs for local consumers. DG Gas stated that gas tariffs have not been increased for local consumers falling in the protected category, and almost 57% of total consumers fall in this category.
The Committee was briefed about plans for the settlement of circulated debt of PSO, SSGC, SNGPL, and OGDCL. DG Gas informed that the circular debt of the oil and gas sector currently stands at Rs. 2800 Billion, with Rs. 2080 Billion as the principal amount.
