The removal of subsidy on power tariffs may prove to be politically difficult to implement for the government of the day as the people as the consumers were already allergic to the quality of services of the utility companies as well as exorbitant electricity prices impairing economics of the small and medium business especially in the face of depressive economic activity and slowdown. In this backdrop, the planned power tariff hike of 10% in October remains the second major milestone for a sustainable resolution of inter-corporate debt. It may be mentioned that the government’s latest decision to hike petroleum product prices by 7-8% in the latest monthly price review has drawn severe criticism from all corners of the country and as well as the media and opposition alike.
However while the trade and industry and general consumers were making hue and cry over recent hike in petroleum prices, the Oil Marketing Companies, particularly Pakistan State Oil (PSO), stand to benefit from strong inventory gains and firm margins.
The latest revision in prices reflects the impact of both international prices (up 10% Mom) and weakening of the Pak Rupee (3%). While the government has fixed HSD margins at Rs1.35/litre or US$2.6/bbl (40% of total volume), margins on furnace oil (deregulated) and gasoline (4% of ex-refinery prices) should increase by 2% and 10% respectively.
Via Pakistan Observer
Consumers, Electricity, Infrastructure, Oil, Petrol
The increase in petrol and diesel rates by Rs. 4.80 and Rs. 4.59 per litre will push up commodity prices by 50 paisa to Rs2 per kg.
Traders said many transporters have already enhanced charges and this would make a negative impact on the already enhanced prices of various items. They said they cannot increase rates immediately as the city government has capped prices till Sept 10.
The price regulators are already struggling to implement official rates during Ramazan but efforts have so far been in vain as a majority of traders have openly been over-charging consumers.
Many retailers have displayed price lists but they completely ignore the official rates.
Via Dawn.com
Economics, Pakistan, Petrol
food
Fuel cost is one of the most expensive items for many developing and developed countries. In Pakistan we have a lot of waste and inefficient use of our cars and commercial fleets. Perhaps high tech devices can help in this area. Check this out:
In an uncertain economy, organizations are turning to GPS-enabled Service Workforce and Fleet Management solutions to drive efficiencies into their service organizations so as to maintain customer satisfaction levels, drive resource utilization levels while controlling service-related costs. These firms are actively looking to increase visibility into all service resources via GPS, according to a recent research report titled “Service Workforce and Fleet Management: Driving Utilization with Location Intelligence,” published by the Aberdeen Group, a Harte-Hanks Company.
“Organizations responding to our research indicate that they currently monitor and track the location of 35% of their workers and 47% of their vehicles,” said Sumair Dutta, senior research analyst, Aberdeen Group. “This is up from averages of 23% for workers and 35% for vehicles in 2008 with indications of further investments in 2010. These results are indicative of the value offered by GPS-enabled tracking, navigation and routing solutions in meeting cost containment and customer management pressures faced by today’s service and manufacturing organizations.”
Research findings in the Service Workforce and Fleet Management report indicate responding firms have seen the following average improvements in key service performance indicators since the adoption of GPS-enabled solutions:
– A 25% reduction in idle times
– A 32% increase in fleet utilization
– A 22% decrease in fuel costs and a 31% drop in daily mileage
– A 23% boost in workforce productivity
Via Telematics
Conservation, Fuel, Oil, Petrol
fleet, gps
Overcharging of petroleum products by the government was challenged in the Supreme Court through identical constitutional petitions of Pakistan People’s Party Senator Rukhsana Zuberi and Pakistan Muslim League back in 2005. In 2009 this case is being investigated.
On March 30, a three-member bench of the apex court, headed by Chief Justice Iftikhar Muhammad Chaudhry, observed that to resolve the controversy, an exercise had to be undertaken starting from the date when the Oil Companies Advisory Committee (OCAC) was authorised to fix prices of oil and gas, ie from June 29, 2001 to April 1, 2006 when its authority was given to the Oil and Gas Regulatory Authority (Ogra).
The judicial commission, probing into nitty-gritty of oil pricing and profits earned by the government, would start taking input from the relevant authorities here from May 3 to 8.
Via: Business Recorder
Consumers, Pakistan, Petrol, Policy
Research is going on to find the bacteria which efficiently convert biomass to sugar, reports Technology Review. All this to produce more biofuel that is Ethanol, which amounts to 15% of mix in gasoline sold in many parts of US. Zymetis, a start up company which is foussed on this work, has genetically modified a rare, cellulose-eating bacterium to break down and convert cellulose into sugars necessary to make ethanol, and it recently completed its first commercial-scale trial. Earlier this year, the company ran the modified microbe through a series of tests in large fermenters and found that it was able to convert one ton of cellulosic plant fiber into sugar in 72 hours. The trial, researchers say, illustrates the organism’s potential in helping to produce ethanol cheaply and efficiently at industrial scales. Zymetis is now raising the first round of venture capital to bring the technology to commercial applications.
Ethanol production from cellulosic sources is an expensive multistage process. The cellulosic feedstock is first pretreated with heat and chemicals to break down the material’s tough cell walls. Expensive manufactured enzymes are then added to the mix to convert purified cellulose into glucose, which is then treated with yeast that turns the sugars into ethanol. As a result, scientists and several startup companies are developing improved microbes that could accomplish several of these steps, thus making the resulting biofuels more competitive with fossil fuels.
Toward that goal, Laughlin says that the company has developed an ethanol-producing system that revolves around a microbe that quickly and efficiently combines the first two steps of the conventional ethanol process. “It has the ability to break down whole plant material, and it excretes enzymes that break down cellulose, [which works] very well in solution,” says Laughlin.
Cars, Petrol
biofuel, ethanol, R&D, research
An eye-opener, reported at karachi metroblog.
Oil, Petrol
Pakistan is facing hard time as the shortage of Petroleum and Gasoline has hit the country. From the last couple of weeks there has been an era of difficulty on Industrial, consumer and contractor basis. The economical situation of the country is not stable. With this artifical shortage of petroleum and gas the industries are in trouble. Industrialists fear that they would not be able to meet their orders in time. Many industries are being closed or shut down as a result of these issues. As the price of petrol came down there has been a reverse effect. Petrol stations are closed as government is unable to provide petrol to people. Instead of saving Pakistani government stopped the inflow of petrol into the country. People on the other hand have started making rumours of why there has been such shortage. Some think its going to the military where as some say that its an artificial shortage. On the latest news till now the prime minister has requested Iran to aid Pakistani to meet the oil shortage.
On the other hand Sui Northern Gas Compnay has also limited its supply and then again industries and consumers are paying the price for it. There is a word out these days called “Gas Load Shedding”. The company has failed to provide gas to CNG stations and homes. Shortly after the petrol was available on the filling stations, CNG went out. There was not a single gas station open in Lahore at the day time because of the shortage. The CNG station owners say that out of 15% there is 2% gas available to them which is not a good number. In Lahore CNG stations start there business at the midnight and go till 8 in the morning. Both the domestic consumers and the industrialists have protested heavily against the government.
The oil and gas shortage is a threat to Pakistan’s economic stability. If the industries are shut down there would be no domestic or foreign investment. The stock markets will fall. Government has a limited time barrier to come over these problems or to face heavy damages to the infrastructure of the country.
Consumers, Economics, Energy, Gas, Infrastructure, Investment, Oil, Petrol
In case we needed more evidence that the energy situation in Pakistan is a total mess, there is critical shortage of petrol and fuel in Pakistan. There were long lines at the petrol stations and people had to waste a lot of time and effort to get any feul. The previous shortage happened in the summer when prices were going up. The shortage has led to black marketing and petrol was being sold at prices of up to Rs 75-80 per litre. The prices of liquefied petroleum gas also remained above Rs 80 per kg in most areas of Lahore.
Why did this happen now that the oil prices are going down and who is responsbile?
Petroleum dealers said that the shortage of petrol and diesel is due to non-supply from oil marketing companies (OMCs). Pakistan Petroleum Dealers Association Central President Abdul Sami Khan said the oil marketing companies have demanded the government increase their commissions and therefore are not ready to give stocks of petrol in the country until their demand is met. He said the government should take immediate action to provide relief to the citizens. An oil company official said the petroleum prices are likely to fall in the coming days, adding that petrol companies are not ready to lift the fresh stocks.
What is the government doing to fix this?
Consumers, Oil, Petrol
