New pric­ing mech­a­nism for LNG pur­chase sug­gested

The Pak Banker - - NATIONAL -

Pa­tron Is­lam­abad Cham­ber of Small Traders Shahid Rasheed Butt on Wed­nes­day said im­porter and dis­trib­u­tors of LNG are get­ting over 100 per­cent profit from con­sumers which is un­jus­ti­fied.

The ben­e­fit of re­duced prices of LNG must reach masses as well as in­dus­trial sec­tor which is suf­fer­ing from in­creased cost of do­ing busi­ness, he said. Shahid Rasheed Butt said that LNG im­porter and dis­trib­u­tors have set high profit mar­gins brush­ing aside prices fixed by oil and gas reg­u­la­tor Ogra which is il­le­gal. He said that in­ter­na­tional oil prices are in­creas­ing which will jack up prices of LNG mak­ing it less at­trac­tive for the con­sumers there­fore a new pric­ing for­mula for pur­chas­ing gas should be con­sid­ered.

Presently coun­try is buy­ing gas from Qatar at 13.37 per­cent of the Brent crude which trans­lates into less than five dol­lars per MMBTU. How­ever, the gas util­i­ties have set price very high de­mor­al­is­ing con­sumers. The LNG bought on less than five dol­lars would be sold to CNG sec­tor for 12 dol­lars per MMBTU, tex­tile sec­tor will get it for 10 dol­lars per MMBTU and IPPs would pay nine dol­lars per MMBTU.

This ar­range­ment has in­creased the prices which will trans­fer all the profit to oil re­tailer and gas util­i­ties leav­ing con­sumers high and dry. He said that by­pass­ing Ogra is not only il­le­gal by it is to set a dan­ger­ous trend. The vet­eran busi­ness leader said that govern­ment should take note of the sit­u­a­tion less it harm the revo­lu­tion­ary pro­ject which is set to change the en­ergy and eco­nomic land­scape of the coun­try.

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