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Business Recorder
5 days ago
- Business
- Business Recorder
Ministry seeks ECC nod for new OMCs, dealers' digitisation
KARACHI: The Petroleum ministry is set to send a summary to the Economic Coordination Committee (ECC), in near future, for imposition of additional fees for oil marketing companies (OMCs) and dealers to digitize supply chain and petrol pumps in a bid to curb fuel smuggling. While talking to the media during his visit to the Sui Southern Gas Company Limited (SSGC) on Friday, Federal Minister for Petroleum Ali Pervaiz Malik said that the additional fee will be added to the price of petroleum products. However, he claimed that the imposition of fees would not lead to an increase in fuel prices. He mentioned plans to digitize the petrol pumps and supply chain system within the next 6-12 months. Minister said that the cost will be utilized to digitize vehicles transporting oil to pumps and petrol pumps to detect and discard smuggled diesel and other petroleum products. The digitization plan involves using radar-based technology, digital nozzles, and installation of CCTV cameras to monitor the supply chain. For this, the ministry will send a summary to the Economic Coordination Committee (ECC) within two months, seeking approval for the additional fee, which is expected to be around Rs1.35 per liter for OMCs and Rs1.40 per liter for dealers. The minister elaborated that the government has already registered all petroleum products nationwide in phase-I and plans to fully digitize trucks transporting petroleum products over the next two to three months. The nozzles will also be fully digitized in the next few months. The minister highlighted the importance of ensuring a consistent supply chain of energy products, making them competitive in the international market, and ensuring sustainability. He also mentioned the upgrading of the oil refineries to produce clean energy for a better environment. Malik further informed that the government is working to curb smuggled diesel with the help of border law enforcement forces and restructure the Oil and Gas Regulatory Authority (OGRA) as well. Federal Minister for Energy Pervaiz Malik has expressed optimism about the country's economy, citing signs of early recovery in the form of lower inflation, reduced electricity tariffs, and decreased petroleum and diesel prices. In a press briefing at SSGC head office on Friday, Malik also acknowledged that the government still faces significant challenges, particularly in the energy sector. 'Accumulation of circular debt and stopping losses in the gas sector are complex issues that require immediate attention,' he said. Despite these challenges, Malik expressed confidence that the government is making progress. 'We want to put Pakistan on a sustainable, inclusive, developed, and climate-friendly journey, and for this, the energy sector is being organized,' he said. However, Malik expressed concern over power producers not honoring their commitments to lift imported gas (RLNG) for electricity generation, which is contributing to the circular debt. The ministry might consider acquiring bank loans to reduce the circular debt, he added. The minister emphasized that the government is committed to providing relief to the public and ensuring the country's economic progress. Copyright Business Recorder, 2025
Express Tribune
5 days ago
- Business
- Express Tribune
Electricity focus hurts balance
Listen to article Federal Minister for Petroleum Ali Pervaiz Malik has stated that the overemphasis on the power sector in recent years has undermined other vital components of Pakistan's energy landscape, particularly the gas and petroleum sectors. During a visit to the Sui Southern Gas Company (SSGC) head office in Karachi, Malik remarked that while electricity remains a critical component of national energy planning, the persistent neglect of the petroleum and gas sectors is aggravating existing problems, most notably the growing circular debt. He revealed that power generation companies had committed to purchasing six LNG cargoes but are now failing to honour those agreements, leaving around 600 million cubic feet per day (mmcfd) of imported RLNG unused. This failure, he cautioned, is leading to an accumulation of receivables at Pakistan State Oil (PSO) and contributing to a rise in circular debtcontrary to International Monetary Fund (IMF) directives aimed at reducing it. Malik disclosed that the government is considering borrowing from banks to cover gas-sector dues, following a financing model already used in the power sector. He also raised the alarm over rampant diesel smuggling, calling it a "cancer" within the petroleum industry. To counter this, the ministry has launched a wide-ranging digitisation initiative. All trucks transporting petroleum products will be brought under a digital monitoring system, and every unloading point will be officially recorded. The digitisation drive will also cover petrol pumps across the country, where manual nozzlesfrequently used for fuel theft or the sale of smuggled fuelwill be replaced with digital meters linked directly to the Federal Board of Revenue (FBR). To finance this upgrade, the petroleum ministry is preparing a proposal for the Economic Coordination Committee (ECC) to approve an additional fee on petroleum products. Though Malik did not specify the fee amount, sources suggest it may be Rs1.35 per litre for oil marketing companies and Rs1.40 for dealers. On the issue of new residential gas connections, Malik said a final decision would be made after consultation with Prime Minister Shehbaz Sharif. He noted that the gas pipeline infrastructureparticularly in Karachiis outdated, with some pipelines over 40 years old. SSGC's network alone spans 55,000 kilometres, underscoring the magnitude of the challenge. Malik also discussed plans to improve energy trade with the United States by exploring petroleum imports. A special committee under the finance minister is reviewing the proposal. He concluded his Karachi visit with a tour of Pak-Arab Refinery Limited (PARCO), where he was received by Managing Director Irteza Ali Qureshi and senior company officials.
Business Recorder
6 days ago
- Business
- Business Recorder
Smuggling control: Pakistan govt may approve fees to digitise fuel supply, petrol pumps
Pakistan government is likely to approve additional fees for oil marketing companies (OMCs) and dealers to digitise supply chain and petrol pumps in a bid to curb fuel smuggling, Business Recorder learnt on Friday. The additional fee 'will be added to it (petroleum products) in the form of every litre,' said Federal Minister for Petroleum Ali Pervaiz Malik on Friday while talking to the media during his visit to the Sui Southern Gas Company Limited (SSGC). As per details, the digitisation would use radar based technology and digital nozzles, and installation of CCTV cameras to run and monitor the supply chain. Fuelling around: OMCs' rollercoaster ride in FY24 Malik did not disclose the amount of the additional fee. The background information, however, suggests it may be Rs1.35/litre for OMCs and Rs1.40/litre for dealers (petrol pumps). The Petroleum ministry is set to send a summary to the Economic Coordination Committee (ECC) in this regard within two months. The minister stated that his ministry had previously submitted a summary, which contained some issues. The issues were being addressed, he added. 'The cost will be utilised to digitise vehicles transporting oil to pumps and digitise petrol pumps as well to detect and discard the smuggled-in diesel and other petroleum products,' he said. The minister elaborated that they had registered all the petroleum products nationwide in phase-I. In the phase-II, lorries and trucks - which transport petroleum products from oil depot to petrol pumps - would be fully digitised over the next two to three-months from 85% at present. In another two months, the nozzles would be fully digitised using 70% at present, he explained. FBR tells ministry: 2.5% advance tax not applicable to OMCs' outlets 'The petrol pumps and supply chain system of the products would get fully digitised within six to 12-month from the time we provide OMCs the required investment and make arrangements for payments and paybacks,' Malik said. The minister regretted the power producers were not 'honouring their commitment to lift the imported gas (RLNG) for electricity generation', which is apparently causing surge in receivables of the Pakistan State oil (PSO) and filing up circular debt in the gas sector in contradiction to the International Monetary Fund (IMF) recommendation to free the debt and reduce it to zero in the time to come. The ministry might opt to acquire bank loan to reduce the circular debt like power sector was doing, the minister said.
Time of India
14-05-2025
- Time of India
Duo use forged documents, pledge bizman's flat to raise loans worth 2.8 crore from two nationalised banks
1 2 3 Pune: The Kalepadal police are investigating the complaint of a 74-year-old city-based import-export trader, accusing a real estate broker from Katraj and a woman from Jaysingpur in Kolhapur district of forging documents to mortgage his 3BHK flat in Gahunje. As per the plaint, the victim's flat was mortgaged with nationalized banks in Mumbai and Pune to secure loans worth Rs2.82 crore in the FIR registered on May 13, complainant Ashok Nopany, a resident of Undri, also stated that bank officials acted in connivance to sanction loans in the second half of 2022 without verifying the authenticity of the documents furnished by the woman. This is despite the fact that the flat is held jointly in his and his daughter's name and they continue to possess the flat, the complainant broker and the woman he introduced to Nopany as his 'sister from Jaysingpur' created an account in Nopany's name with the Akurdi branch of a cooperative bank and got the loan amounts transferred two banks have now approached the Debt Recovery Tribunals (DRTs) in Mumbai and Pune, seeking possession of the same flat against which they sanctioned Rs1.42 crore and Rs1.40 crore loans, respectively. Documents provided to the DRT in Pune by one of these banks revealed the account opened in Nopany's name with the cooperative his part, Nopany has secured a stay order from a civil court in Wadgaon Maval against the attachment and auction notices issued by the banks in relation to his flat."I have also filed third party intervention pleas with the DRTs. The matters are pending for hearing," Nopany told TOI on officer and assistant inspector of the Kalepadal police, Amit Shete, said, "The suspects named in the FIR are on the run and have switched off their cell phones. Our team will be working on clues to see that they are nabbed soon. For now, a case of criminal breach of trust, cheating, forgery with an intent to use forged documents , forgery of valuable security, use of forged documents as genuine and common intention has been registered as per the provisions of the Bharatiya Nyaya Sanhita (BNS)."Nopany told TOI that in Aug 2022, he was looking for a buyer for his Gahunje flat as he was to raise money for his business. He met the Katraj real estate broker through other real estate agents. The broker evinced interest in buying Nopany's Gahunje flat. After a couple of meetings at his Undri residence, a deal was struck to sell the flat for Rs1.95 to signing an agreement for sale, the broker convinced Nopany to execute the sale agreement with his sister from Jaysingpur to secure a loan at a faster pace. A sale agreement was signed and registered with the Wadgaon Maval sub registrar's office against the payment of a Rs20,000 token to Nopany, with a promise to clear the remainder as soon as the loan is the next few months, when Nopany did not get the promised money, he started asking the broker to cancel the sale agreement. However, the latter kept insisting on waiting further to get the said, "In March 2024, representatives of one of the banks reached the Gahunje society to paste an auction notice in the woman's name on my flat. I checked with them, and they told me that the woman had defaulted on repayment of Rs1.42 crore loan against the flat mortgaged with the bank. I wondered how this could be possible and got a lawyer to secure a search report and a title report. I realised that the woman used a photocopy of the property documents I had given to the broker to create forged documents to mortgage the flat. She later transferred the sale agreement in favour of the broker."He added, "Just when I was sorting out this issue with one bank, officials from the other bank's Shivajinagar branch tried to paste another auction notice on my flat claiming recovery of Rs1.40 crore loan dues. In both the cases, the banks did not have search and verification reports and nor did they contact me before sanctioning the two loans."API Shete said, "The banks have suffered huge financial loss, but they have not registered complaints. Instead, they moved the DRTs to claim possession of the flat. We would be writing to them to submit reports as to what inquiry they have done before sanctioning and disbursing the loans and who all were part of the loan sanctioning process."
