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Petroleum Policy 2012: Controversy over gas price could cost govt billions
Source: Tribune | 19-03-2013

Although the Pakistan Peoples Party-led government has completed its tenure, it has left unresolved a controversy in the energy sector that can cost the public purse billions of rupees. Now, the upcoming short-lived caretaker setup will have to deal with the issue, which may lead to a fall in gas production.


According to sources, soon after the approval of the Petroleum Policy 2012, two exploration companies sought higher prices for increasing production from existing fields, which sparked a controversy. One company was producing 13 million cubic feet of gas per day (mmcfd) against a commitment of 3.5 mmcfd in the development plan.This company asked the government to pay arrears of $1.7 billion in accordance with the clause of 10% increase in gas production in the new policy since the time it increased the output,” a source said. 


 

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