ISLAMABAD: Federal Minister for Finance Senator Ishaq Dar stressed the need for improving management and mechanism of oil supplies to Independent Power Producers (IPPs) and this should be efficient.
During a meeting regarding Pakistan State Oil (PSO) he said the government was focusing on gas, coal, solar, and wind power plants to reduce furnace oil consumption.
Dar urged fuel consumption of IPPs should be according to their power production. He asked for rationalisation of payment to PSO for ensuring uninterrupted supply of furnace oil. Management Director PSO Amjad Pervez Janjua briefed Dar about the financial situation of institution and oil supplies.
The meeting was informed usually electricity production from hydel sector in July was around 6,500 megawatts (MW), but due to water shortage in dams, this stands at 5,200 MW.
This shortfall in hydel power generation has resulted in increased demand of furnace oil by IPPs.
Payment being made to PSO is not keeping pace with the demand of furnace oil and the IPPs would need to rationalise their demand and should work on long term planning for enhancing their stocks, he informed.
Dar after having detailed briefing said there was a need to revisit the whole cycle holistically and adopt a disciplined mechanism to take into affect the measures including the consumption of furnace oil by IPPs should be realistic corresponding to their power generation.
He asked for adopting the mechanism for rationalisation of payment to PSO for ensuring uninterrupted supply of furnace oil adding natural gas should be used in order to decrease demand of furnace oil.
Steps should be taken in coordination with Indus River System Authority to ensure increased hydel power generation during the summer season, he added.
Dar said the government has initiated work on multiple power generation projects and in the next few years, government would not only be able to meet energy demand but the energy mix would also be balanced in order to save foreign exchange which was being spent on import of furnace oil.
Our focus is on hydel, wind, coal and solar power generation, which will be less expensive as compared to thermal power. We have to take a holistic approach to run the whole cycle in a disciplined way and assured the management of the PSO their genuine concerns will be addressed by the Finance Ministry in coordination with the ministries of Petroleum and Natural Resources and Water and Power, he added.
Finance Secretary Dr Waqar Masood, Secretary Petroleum and Natural Resources Abid Saeed, adviser to the Finance Ministry Rana Assad Amin and senior officials of the ministries of Finance, Petroleum and Natural Resources and Water and Power attended the meeting.
KARACHI: Foreign offloading and conflict between brokers and regulator dragged trading at Karachi ...