Wednesday, March 22 2023

Govt should revise tight gas policy
The government should revise its tight gas policy to nudge energy companies towards exploring natural gas that’s obtained from reservoir rocks with low permeability using advanced technology. Addressing a seminar organised by CFA Society Pakistan on Tuesday, energy sector expert Muhammad Asim Subhani said each well that’s dug for tight gas must get a third-party certification in order to receive formal price confirmation from the government. “There’s been a success (in finding tight gas). But companies are reluctant to invest because once they explore, produce (and) flare their gas, they still have to spend years in getting the price confirmed from the authorities,” said Mr Subhani who serves as director of new business and subsurface at Prime Pakistan Ltd, an exploration and production firm that formerly operated as Eni Pakistan. At least one company is currently producing tight gas, even though the country is estimated to have reserves of 100 trillion cubic feet.
Related news categories: business misc oilgas-exploration oilgas-marketing

Friday, March 17 2023

Another fuel shock as petrol, diesel get dearer
The government on Wednesday increased the prices of all petroleum products, except the insignificant light diesel oil (LDO), by up to Rs13 per litre for the next fortnight. With the latest review, the most inflationary high-speed diesel (HSD) prices made a new record, reaching Rs293 per litre. The HSD price adjustment directly impacts consumer prices because of an increase in transport costs. While keeping the LDO rate unchanged at Rs184.84 per litre, the finance ministry said the per-litre price of petrol had been increased by Rs5 and that of HSD by Rs13. The major impact of the hike in prices was mainly because of about Rs16 per dollar average depreciation over the last fortnight, i.e. since March 1. The ex-depot price of petrol has now been fixed at Rs272 per litre for the next fortnight instead of Rs267 per litre, up by Rs5 or 1.9pc. Likewise, the ex-depot price of HSD has now reached Rs293 per litre from Rs280, up by 4.6pc.
Related news categories: business misc oilgas-exploration oilgas-marketing

Thursday, March 09 2023

Oil industry warns of major fuel supply disruption
The country’s oil industry is reportedly in serious trouble in arranging crude oil and petroleum products owing to foreign exchange constraints and prevailing product pricing, particularly following the recent currency depreciation and increase in the central bank’s policy rate. Reporting these challenges to the government, the Oil Companies Advisory Council (OCAC) – an association of more than three dozen major oil marketing companies (OMCs) and refineries – have warned of a major disruption to the already fragile supply chain. In a communication to the ministers for finance and energy, the governor of the State Bank of Pakistan (SBP) and the chairman of the Oil and Gas Regulatory Authority (Ogra), the association has sought an urgent engagement to address the “severe impact of the recent depreciation of the rupee”. The OCAC recalled that the oil industry had been requesting the ministries of energy and finance for developing a transparent mechanism for the complete recovery of foreign exchange losses in product pricing. It said the government should immediately revise the prices based on the current exchange rate but if it was not possible in the given challenging situation then at least a system should be put in place immediately.
Related news categories: business misc oilgas-exploration oilgas-marketing

Wednesday, March 08 2023

Oil industry warns of major fuel supply disruption
The country’s oil industry is reportedly in serious trouble in arranging crude oil and petroleum products owing to foreign exchange constraints and prevailing product pricing, particularly following the recent currency depreciation and increase in the central bank’s policy rate. Reporting these challenges to the government, the Oil Companies Advisory Council (OCAC) – an association of more than three dozen major oil marketing companies (OMCs) and refineries – have warned of a major disruption to the already fragile supply chain. In a communication to the ministers for finance and energy, the governor of the State Bank of Pakistan (SBP) and the chairman of the Oil and Gas Regulatory Authority (Ogra), the association has sought an urgent engagement to address the “severe impact of the recent depreciation of the rupee”. The OCAC recalled that the oil industry had been requesting the ministries of energy and finance for developing a transparent mechanism for the complete recovery of foreign exchange losses in product pricing. It said the government should immediately revise the prices based on the current exchange rate but if it was not possible in the given challenging situation then at least a system should be put in place immediately.
Related news categories: business misc oilgas-exploration oilgas-marketing

Thursday, March 02 2023

Oil prices rise as China factory bounce boosts demand outlook
Oil prices extended gains for a second session on Wednesday after a strong jump in manufacturing in China, the world’s top crude importer, boosted the outlook for global fuel demand. Brent crude futures for May rose 46 cents, 0.6 per cent, to $83.91 a barrel at 0445 GMT. US West Texas Intermediate (WTI) crude for April gained 42 cents, or 0.6pc, to $77.47 a barrel. Oil prices continue to be supported by expectations for a strong rebound in demand in China, the world’s second-largest crude consumer. “Another round of upside surprise in China’s PMI further provides conviction of a stronger-than-expected recovery, which supports a more optimistic oil demand outlook,” said Yeap Jun Rong, market strategist at IG. “That provided a much-needed catalyst for oil prices to tap on for some relief following (Monday’s) previous sell-off, with China’s recovery showing to be on track to cushion some of the global demand weakness from hawkish central banks,” Yeap added. Data showed China’s factory activity rose for the first time in seven months in February, according to the purchasing manager’s index (PMI) published by Caixin/S&P Global on Wednesday.
Related news categories: business misc oilgas-exploration oilgas-marketing