Latest news with #Rs2.09
Time of India
27-05-2025
- Business
- Time of India
MSEDCL to refund Rs29.87 crore to power consumers as interest on security deposits
Nagpur: Maharashtra State Electricity Distribution Company Limited (MSEDCL) will refund a total of Rs29.87 crore as interest to low-tension electricity consumers in the Nagpur circle for the financial year 2024–25, against the security deposits they paid. This interest amount is being adjusted directly into the consumers' electricity bills. Of this, Rs26.13 crore will be refunded to 15.40 lakh consumers in Nagpur district, while Rs3.74 crore will go to 3.96 lakh consumers in Wardha district. Compared to the previous financial year, this year's refund amount is higher by Rs2.09 crore. MSEDCL stated that the security deposit collected from consumers is used by MSEDCL not only for consumer welfare, but it also earns interest at rates determined periodically by the Reserve Bank of India (RBI). The discom claimed that MSEDCL's entire operation runs on the strength of its consumers. "The revenue collected from electricity bills covers power purchase, transmission, distribution, maintenance, repairs, and administrative expenses. It is only when consumers pay their bills regularly that MSEDCL can continue purchasing and supplying electricity smoothly," said MSEDCL. The distribution company has the right to reassess security deposits once a year, based on electricity consumption patterns. If a consumer's security deposit falls short of the average two-month consumption amount for the financial year, they are issued a bill for an additional security deposit. Even if a consumer previously paid a deposit, if their electricity usage or tariffs increased, the difference is billed as an additional security deposit. For consumers who have not yet paid the additional deposit, the outstanding amount is being adjusted from the interest on the security deposit. The regulatory commission has instructed that interest on consumer security deposits be paid at rates specified by the RBI from time to time, depending on the deposit's duration. Importantly, the security deposit held with MSEDCL remains the consumer's money — when the electricity supply is permanently disconnected, this deposit is refunded to the consumer along with the interest. MSEDCL has appealed to all consumers to promptly pay any additional security deposit amounts when billed, in order to ensure smooth operations and continued cooperation.
Business Recorder
17-05-2025
- Business
- Business Recorder
POL price adjustment: Ogra's advice disregarded
ISLAMABAD: Consumers see a smaller reduction in high-speed diesel (HSD) prices than initially proposed by the Oil and Gas Regulatory Authority (Ogra). Effective May 16, 2025, the federal government has reduced HSD price by Rs2 per litre, significantly less than Ogra's recommended Rs4.09 per litre decrease. Meanwhile, petrol prices will remain unchanged, as a result of government adjustments to the inland freight equalization margin (IFEM) and exchange rate adjustments, despite OGRA suggesting a Rs1.25 per litre decrease. The federal government adjusted Rs2.09 per litre out of total recommendedRs4.09 per litre decrease in HSD in exchange rate and IFEM on HSD. Avg of platts with incidentals and duty on HSD reduced by Rs4.09 per litre from Rs159.47 per litre on May 1 to Rs155.38 per litre on May 16, 2025. The government allowed exchange rate impact of 84 paisa in the review. The IFEM increased by Rs1.55 per litre from Rs3.33 per litre to Rs4.88 per litre. District margin and dealer margin on HSD was kept unchanged at Rs7.87 per litre and Rs8.64 per litre, whereas, extra margin reduced from 31 paisa to 1 paisa. Avg of platts with incidentals and duty on petrol reduced by Rs1.25 per litre from Rs151.71 per litre on May 1 to Rs150.46 per litre on May 16, 2025. The government allowed exchange rate impact of 1.25 per litre from 0.09 paisa to Rs1.34 per litre in the review. The IFEM remained unchanged at Rs6.30 per litre. Copyright Business Recorder, 2025
Express Tribune
17-05-2025
- Business
- Express Tribune
Refineries saved from further losses
Listen to article New Petroleum Minister Ali Pervaiz Malik has come to the rescue of oil refineries, which are facing losses of billions of rupees, in a move that will pave the way for investment of up to $6 billion in the refining sector. After becoming the petroleum minister, Malik also took measures to fully implement the facility of 35% allocation of locally explored gas to third parties. The issue had been pending for several years. The delay in implementing the Brownfield Refineries Policy 2023 had affected timelines for plant upgrade projects of the refineries, which sparked concerns among foreign investors and prevented them from making fresh investment. In the Finance Act 2024, petroleum products – motor gasoline (Mogas or petrol), high-speed diesel (HSD), kerosene oil and light diesel oil (LDO) – have been classified as "exempt". As a result, the refineries and oil marketing companies have to bear the cost of input sales tax (estimated at Rs34 billion for financial year 2024-25) and it cannot be recovered through product prices, which are regulated and fixed by the Oil and Gas Regulatory Authority. During the recent revision in oil prices, the government allowed refineries to charge Rs2.09 per litre on HSD and Rs1.09 per litre on petrol in order to recover Rs34 billion worth of losses over 12 months. The oil industry has hailed the decision and has given credit to the new petroleum minister and the petroleum secretary, who pleaded their case before the Economic Coordination Committee (ECC) and the prime minister for its resolution. Attock Refinery CEO and OCAC Chairman Adil Khattak told The Express Tribune that the petroleum minister had been very helpful in resolving the loss recovery issue with full support from the petroleum secretary. However, he said the sales tax exemption matter should be permanently resolved in the upcoming budget, adding that the current decision of the government to recover the losses of refineries and the resolution of GST issue would help secure investments of $6 billion in upgrading the refining sector. Pakistan Refinery Limited (PRL) was the first victim of the delay in implementation of the refinery policy because it failed to woo foreign investors for modernising its plants. It floated a tender to attract a contractor and financing for plant upgrade. The deadline for the tender was in December, but Chinese investors refused to participate until the government addressed the issues faced by the refineries. In the first tender, not a single investor participated in bidding. PRL has floated the tender for the second time, where the last date for submitting bids is May 30. However, industry officials say they are not hopeful that any investor will participate. Refineries are considered strategic national assets that play a vital role in energy security and economic development. Pakistan's refineries produce diesel in accordance with the specifications notified by the Ministry of Energy (Petroleum Division). The import of a single HSD cargo costs approximately $45 million, which is an unnecessary burden when adequate local supplies are available. The upgrading projects will help double diesel production in the country. Over the years, the refineries have been investing in modernisation, including capacity expansions and installation of Isomerisation and Diesel Hydro Desulphurization (DHDS) units, enabling them to improve fuel specifications. Currently, Pakistan's refineries produce HSD with sulphur content ranging from Euro I to Euro V. A refinery already produces the Euro V-compliant diesel, two refineries supply Euro III fuel and the remaining produce diesel with sulphur content of around 5,000 ppm, far lower than the reported figure of 10,000 ppm.
