On Monday, the Economic Coordination Committee of the Cabinet approved import of 300,000 tonnes of wheat from Russia under the government-to-government deal at a cost of $372 per tonne. Moreover, the ECC approved raising OS petrol and diesel margins from Rs3.68 to Rs6 per liter for a period of three months, marking an increase of 63.04 percent in OMC margins.
According to top official sources, the oil prices may be deregulate starting November 1, 2022 after detailed deliberations. As part of the implementation of the deregulation of petroleum prices, the OGRA will consult with stakeholders about in-country freight equalization, dealer margin protection, and sales tax collection. In the interim period, the OGRA would recommend its proposal to the ECC no later than September 15, 2022.
An interim margin of Rs6 per liter will be fixed for the OMCs for an interim period. Furthermore, the ECC approved OGRA monitoring the margins to be included in the ex-depot sales price, as approved by the forum.
A proposal also made to determine petroleum prices every Friday evening in 2022 with the newly approved mechanism, with prices effective every Saturday starting August 5, 2022. Nevertheless, this decision has not put into practice so far due to various reasons.
Earlier on Monday night, the Ministry of Finance announced that Senator Mohammad Ishaq Dar had presided over the Economic Coordination Committee’s meeting at the Finance Division. There were Ahsan Iqbal, Syed Naveed Qamar, Shahid Khaqan Abbasi, MNA/ex-PM, Tariq Bajwa, Tariq Pasha, Federal Secretaries, Chairman FBR, and other senior officers in attendance.
US$ 372/tonnes of wheat
M/s submitted its offer for the procurement of wheat from Russia on a G2G basis. In order to provide 300,000 tonnes of specified milling costing US$ 372/tonne of wheat to Prodintorg between 1st November 2022 and 15th January 2023. After deliberation, the ECC approved the summary of the meeting after much deliberation.
Energy Ministry (Power Division) presented a summary of revisions to oil marketing companies’ (OMCs’) oil product margins. The ECC approved the summary in principle and allowed the revision to the margin at Rs. 6/liter, subject to POL pricing fiscal space.
Power Purchase Agreement (PPA) for commissioning
The Ministry of Energy has presented a summary for amendments to the Power Purchase Agreement (PPA) for commissioning of CPEC – TCB – I (On Thar Coal) without financial close. Despite the 90% completion of the project, Sinosure and lenders’ approvals delayed due to unforeseen events and reasons. The PPA should thus be consider effective from 27-08-2019 and CPPA may amend the PPA accordingly.
Having considered the summary, the ECC approved it and added that there should not be any impact on tariffs due to this decision.
Another summary of the Pakistan Energy Revolving Fund presented by the Ministry of Energy (Power Division). CPPA has authorized to open an assignment account with SBP Islamabad under the name of Pakistan Energy Revolving Fund.
