Energy Sector On Recovery Path After Govt. Fixes PTI Regime Mistakes

(@ChaudhryMAli88)

Energy sector on recovery path after govt. fixes PTI regime mistakes

ISLAMABAD, (UrduPoint / Pakistan Point News - 21st Jul, 2022 ) :The incumbent coalition government, led by the Pakistan Muslim League-Nawaz (PML-N), took all possible corrective measures to revive the energy sector and lessen sufferings of the common man facing hard times due to wrong policies of the PTI regime.

Now, the prudent policies introduced by the current government in the energy sector have started yielding the required results, and their dividend is being passed on to the public in the form of reduced prices of petroleum products, fare charges of Pakistan Railways and Pakistan International Airlines (PIA).

The prices of petrol and diesel have been slashed by Rs18.50 and Rs40.54 per liter respectively instead of imposing the sales tax on petroleum products.

Similarly, following the guidelines of PM Shehbaz to ensure providing maximum relief to the masses, Minister for Aviation Khawaja Saad Rafique announced 10 per cent cut in fares for the passengers travelling in the economy class of main express trains, as well as both the economy and business classes of the Pakistan International Airlines (PIA), domestically. Besides, up to 15 per cent reduction in the PIA's fares on international routes aimed at passing on the benefit of decreased jet fuel prices to air travelers.

Minister of State for Petroleum Dr Musadik Malik said due to effective policies of the government, the country's oil import was witnessing a significant reduction; and because of effective management, the petrol and diesel stocks stood at the record highest level.

This June, the country imported almost 9 per cent less petroleum products with effective management as compared to the same month of the last year.

In June 2021, around 778,000 Metric Ton (MT) petrol was sold in the country that came down to 704,000 MT in June 2022, showing a 9 percent decrease. Similarly, there was an 8-9 percent decline in the sale of diesel oil used in heavy vehicles and agriculture machinery.

Besides, there was almost a 30 per cent projected reduction in consumption of petrol, if comparison was drawn between July-2021 and July-2022.

"In July last, almost 818,000 Metric Ton petrol was consumed, and the consumption projection for the current month (July) is 580,000 MT." Likewise, around 730,000 MT diesel was consumed in July 2021, which was expected to be consumed approximately 500,000 MT in the current month.

Currently, the country has 34-day petrol and 66-day diesel stocks to meet the country's energy needs in a smooth manner. "We are creating a balance between import and maintaining reserves," Musadik Malik said.

The energy crisis in Pakistan is mainly the outcome of the Pakistan Tehreek-e-Insaf (PTI) government's inefficiency and lethargic attitude towards timely completion of the projects initiated by the PML-N government during its last tenure (2013-2018.) According to official documents available with APP, the PTI government delayed the completion of 720 MW Karot Hydro and 1,214 MW Shanghai Thar coal indigenous power projects on account of lack of ownership, project monitoring and failure to fulfill contractual commitments on already completed ones. Similarly, another RLNG-based 1263 MW highly efficient Trimmu project was scheduled to complete over three years ago, but it remained in limbo. The commissioning of these projects would have considerably reduced the load-shedding duration.

The PTI government also failed to set up new coal-based power plants in time and deliberately avoided signing long-term contracts with the global suppliers of LNG when it was available in the range of $3 to 5 per MMBTU (Metric Million British Thermal Unit) in mid-2020 and currently at $40 per MMBTU. It is a classic case of missing the stitch in time that saves nine.

"The existing power load-shedding is occurring due to a 300 per cent spike in the prices of fuel, including furnace oil, liquefied natural gas (LNG) and coal in the local and global markets over the past 18 months, while the Russia-Ukraine war further soared them," official sources in the Power Division said while talking to APP.

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