'Pakistan Times' ..............................Friday, November 04, 2011
KARACHI: Federal Minister for Petroleum and Natural Resources Dr Asim Hussain
on Saturday said that the government has banned movement of refined petroleum
products to Afghanistan.
“The trade of petroleum and petrol is banned to Afghanistan to prevent
dumping in the local market that is causing huge revenue losses, besides
damaging the road network of Pakistan,” the minister said at a meeting with
members of the Federation of Pakistan Chambers of Commerce and Industry
(FPCCI).
Afghanistan can trade such products only after paying taxes and duties, the
minister said. “A bill will be presented before the Parliament to make procedure
for trade of these products in future,” said Dr Asim. The minister informed the
FPCCI members that December and January would be critical for gas supply.
“However, gas supply during these two months would be managed,” he added without
giving details.
In order to prevent usage of gas the government has approved replacement of
gas heaters with solar ones, he said, adding, “The utility companies will
provide these heaters to consumers and adjust the cost in their bills.” To a
question about gas supply under the constitution, which provided that where gas
is discovered such area has the right to use it first, the minister said that if
the government implements that rule then Punjab will have no gas because its
production is only eight percent.
In this connection, Dr Asim said that the ministry has proposed LNG import,
which is opposed by the Punjab government. “They (Punjab government) is only
politicising the issue without realising that LNG import is in their favour,” he
added. The Senate is likely to approve a bill regarding prevention from gas and
petrol theft by Tuesday, he said, adding that under this bill, 14 years
imprisonment has been recommended and an FIR would be lodged on the
recommendation of the managing director of a company.
About gas infrastructure surcharge, he said, the issue will be discussed at
the Senate meeting on Tuesday. Briefing about petroleum policy, which is sent to
provinces, he said, it is recommended that zones should be eliminated and steps
should be taken to make lucrative oil and gas returns for companies. Gas tariff
will be based on gas field and 90 percent of the gas will be purchased by the
government, he said. The policy was made considering security concerns, which
kept away the exploration companies from new ventures.
“The lucrative returns would attract companies because risk factor in this
filed is elsewhere,” he added. On the issue of gas tariff for fertiliser sector,
Dr Asim said that the government will move high court against the decision of
the lower court over gas supply. The government intends to make equitable gas
prices for all the sectors, he said.The minister said that Pakistan has immense
potential as more large discoveries are expected in the oil and gas sector.
Large gas reserves are expected at ZIM field in Balochistan, which would be much
more than the present total available reserves, he added.