Staff Reporter
Isamabad
The Economic Coordination Committee (ECC) of the Cabinet has set up a body headed by Special Assistant to Prime Minister for Petroleum Mr. Nadeem Babar to explore various call options for hedging prices for the petroleum products imported by Pakistan.
The ECC meeting held here on Wednesday with Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh in chair also gave go-ahead to a “full and final” human resource rationalisation plan for the Pakistan Steel Mills employees in accordance with the judgements and observations of the Supreme Court of Pakistan and other courts hearing the cases involving the PSM.
The ECC took up the proposal prepared by the Ministry of Energy in consultation with various international institutions and local partners for hedging prices for petroleum products being imported and decided to set up a Committee headed by Special Assistant to Prime Minister for Petroleum Nadeem Babar
OGRA would also be given the policy direction to include the monthly price of the Option in the cost of LNG or any other oil product chosen in announcing the monthly prices.
The ECC also discussed the reported shortage of petrol in some cities and asked the Ministry of Energy, Competition Commission of Pakistan and the OGRA to ensure the requisite stocks were maintained by the OMCs and the supply to the fuel stations across the country was regular and intact throughout the month.
The ECC Chairman while taking a stern view of the reported petrol shortage directed all the relevant Government Ministries /Departments to immediately inform him if situation worsens any further.
On another proposal by the Ministry of Energy, the ECC considered and approved reimbursement of operational cost of Single Point mooring (SPM) installed by M/s Byco.
Under the decision BYCO would submit actual audited operating cost of the SPM (excluding Wharfage/FOTCO charges/crude saving) to OGRA for inclusion in IFEM subject to a cap of PARCO rate while OGRA shall determine the actual impact for inclusion in the IFEM on the ongoing basis.
Consequently with the implementation of the above decision, BYCO will withdraw its case from the Supreme Court of Pakistan and would also provide an undertaking that the ECC decision conclusively closes the pending matter of SPM’s costs.
The ECC also took up a proposal by the Ministry of Energy for payment of unrecovered fixed costs of Rs.43.7 billion to the IPPs and asked the Finance Division to release Rs 23 billion while the issue of remaining payments would be resolved by all the stakeholders within one week and would be taken up in the next ECC meeting.
