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ECC wants cabinet to finalise gas load management programme

* Approves blending of Ethanol into gasoline
* Trade deficit improved by 44.7 percent, foreign remittances increased by 24.03 percent

By Sajid Chaudhry

ISLAMABAD: The federal cabinet’s Economic Coordination Committee (ECC) on Tuesday formed a committee to analyse the issue of a proposed gas load management programme for winter 2009-10.

The ECC, which met under the chairmanship of Finance Minister Shaukat Tareen at the Prime Minister’s Secretariat, considered suggestions for cutting gas supply to the industrial sector in wake of the expected gas shortage in winter.

During the meeting, the Finance Ministry briefed the ECC on the national economy as well, saying the trade deficit improved by 44.7 percent to $3.09 billion in July-September 2009-10 from $5.59 billion last year.

The ECC was informed that overseas workers’ remittances amounted to $2,331.5 million in July-September, showing an increase of 24.03 percent

The ECC sub-committee – consisting of the federal ministers for Petroleum and Natural Resources, Finance, Industries, Agriculture, Textile, Water and Power and the Planning Commission deputy chairman – will submit its proposals regarding the recommended gas load shedding to the cabinet for a final decision. According to the plan, domestic and the commercial sectors, including tandoors and bakers, have been given the top priority for gas supply in winter.

The Petroleum Ministry has already announced that there would be no gas load shedding for CNG stations and no increase in gas prices for CNG users.

The textile industry has warned the government against cutting gas supply to the sector and consultations are underway between industry and government representatives.

During discussions on blending Ethanol (E-10) into gasoline and its pricing, the ECC approved the E-10 ex-depot price of Rs 36.50 per litre, based on the denatured Ethanol distillery quoted price. It also allowed the maintenance of a differential of Rs 2.50 per litre vis-à-vis normal grade gasoline through petroleum levy adjustment on E-10 of Rs 6.90 per litre. The price mechanism for determination of ex-distillery Ethanol price will be worked out by the Ministry of Industries and Production in consultation with all stakeholders.

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