ANL 11.28 Increased By ▲ 1.00 (9.73%)
ASC 9.50 Increased By ▲ 0.41 (4.51%)
ASL 11.24 Increased By ▲ 0.25 (2.27%)
AVN 78.01 Increased By ▲ 0.41 (0.53%)
BOP 5.51 Increased By ▲ 0.11 (2.04%)
CNERGY 5.41 Increased By ▲ 0.08 (1.5%)
FFL 6.76 Increased By ▲ 0.16 (2.42%)
FNEL 5.91 Increased By ▲ 0.06 (1.03%)
GGGL 11.30 Increased By ▲ 0.21 (1.89%)
GGL 16.78 Increased By ▲ 0.25 (1.51%)
GTECH 8.99 Increased By ▲ 0.58 (6.9%)
HUMNL 7.20 Increased By ▲ 0.06 (0.84%)
KEL 2.96 Decreased By ▼ -0.04 (-1.33%)
KOSM 3.46 Increased By ▲ 0.25 (7.79%)
MLCF 27.15 Increased By ▲ 0.15 (0.56%)
PACE 3.10 Increased By ▲ 0.10 (3.33%)
PIBTL 6.11 Increased By ▲ 0.17 (2.86%)
PRL 18.06 Increased By ▲ 0.16 (0.89%)
PTC 7.08 Increased By ▲ 0.11 (1.58%)
SILK 1.19 Increased By ▲ 0.02 (1.71%)
SNGP 34.75 Increased By ▲ 0.47 (1.37%)
TELE 10.94 Increased By ▲ 0.13 (1.2%)
TPL 9.40 Increased By ▲ 0.32 (3.52%)
TPLP 20.49 Increased By ▲ 0.34 (1.69%)
TREET 29.40 Increased By ▲ 0.25 (0.86%)
TRG 77.50 Increased By ▲ 0.39 (0.51%)
UNITY 20.36 Increased By ▲ 0.31 (1.55%)
WAVES 12.80 No Change ▼ 0.00 (0%)
WTL 1.37 Increased By ▲ 0.04 (3.01%)
YOUW 5.51 Increased By ▲ 0.52 (10.42%)
BR100 4,137 Increased By 36.3 (0.88%)
BR30 15,237 Increased By 211.2 (1.41%)
KSE100 41,734 Increased By 192.7 (0.46%)
KSE30 15,891 Increased By 85.6 (0.54%)

ISLAMABAD: Petroleum Division has decided to seek clarification from Ministry of Law on issue of mismatch of charging interest between the Ordinance, GSA and PPA, which is creating a hurdle in recovery of Gas Development Surcharge (GDS), well informed sources told Business Recorder.

The decision was taken at a meeting of the Permanent Reconciliation Committee (PRC) on non-realization of Late Payment Surcharge (LPS)/ interest on delay on non-realization of Late Payment Surcharge (LPS)/ interest on delayed payment of Gas Development Surcharge.

The meeting was participated by Chief Finance Officer- GHCL, Deputy Solicitor-Law Division, Director Audit-Petroleum & Natural Resources, Director General (Gas), Deputy Director (F&P) and Accounts Officer (F&P).

Director General (Gas) presented brief background of the gas development surcharge under the Natural Gas (Development Surcharge) Ordinance, 1967. He further stated that the outstanding GDS and interest thereon is charged by the gas suppliers to the power plants, especially GENCO/ Guddu power plant.

New exploration, more gas production: PD asked to set up technical group

The Chief Finance Officer (CFO) Genco Holding Company Limited (GHCL) contested that they have reconciled the amount of interest with Mari Petroleum Company Limited; however, it could not be done with Pakistan Petroleum Limited. He also stated that there is a mismatch of charging of interest in the Natural Gas (Development Surcharge) Ordinance and the relevant Gas Sale Agreement (GSA) with the gas supplier.

Secretary Petroleum Division opined that the Natural Gas (Development Surcharge) Ordinance, being the law of the land, has an overriding effect on the GSA.

While summing up the meeting, following decisions were taken: (i) gas supplier to provide updated figures of GDS and its interest receivable from power sector ;(ii) the gas supplier will also provide invoicing mechanism under which the GDS and its interest is charged to the power companies and also treatment of amount received from the power plants against the invoices with specific reference to GDS and interest thereon;(iii) GHCL to provide updated figures of GDS and its interest payable to the gas producers;(iv) the issue of mismatching of interest between the Ordinance, GSA and PPA will be referred to Law Division for clarification and ;(vi) it was also agreed that GHCL to suggest mechanism for payment of undisputed amount of GDS and its interest before the next meeting of the Committee.

Copyright Business Recorder, 2022

Comments

Comments are closed.