White oil pipeline project: ECC for locking tariff in dollar terms for 5 years

Islamabad: The Economic Coordination Committee (ECC) of the Cabinet has decided that the prospective tariff of white oil pipeline multi-grade movement project in terms of dollars will be locked for five years to be paid in Pak Rupees, official sources told Business Recorder.

The ECC took this decision on September 9, 2021 on a summary moved by the Ministry of Maritime Affairs, which is now more focused on petroleum sector instead of port affairs.

The following proposals were submitted for consideration and approval of the ECC: (i) the revised tariff of $1 per ton for HSD handling inclusive of PQA royalty (to be paid in equivalent Pak Rupees) to be implemented and incorporated in HSD pricing formula or OMC Dealer margin; (b) tariff differential amount for the period from July 1, 2012 to till June 30, 2020 amounting to Rs 1,505,962 to be incorporated from OMC Dealer Margin for recovery; (c) The revised handling tariff will also be applicable on handling of MOGAS through existing pipeline as an interim arrangement until a dedicated pipeline is laid by FOTCO and its tariff determined on actual cost basis and submitted, separately.

90pc work on white oil pipeline's dualization completed

After detailed discussion, ECC decided that prospective tariff in terms of dollars shall be locked for 5 years to be paid in Pak Rupees, at the prevailing exchange rate, by PSO for HSD and MOGAS with immediate effect.

The ECC also constituted a Committee under the chairmanship of Deputy Chairman Planning to formulate recommendations for the ECC in the light of the report of M/s A.F. Ferguson & Co, regarding payment issue of outstanding dues of Rs1.5 billion payable by PSO since2012 to 2020.

The composition of the Committee will be as follows: (i) representative of Finance Division; (ii) representative of Petroleum Division; (iii) representative of PSO; (iv) representative of FOTCO; (v) representative of PQA; and (vi) Chairman, OGRA. The secretariat support will be provided by the Ministry of Maritime Affairs.

Copyright Business Recorder, 2021