Economic Coordination Committee approves E-10 Ex-Depot sale price.

Islamabad , October 27, 2009 (Frontier Star): The Economic Coordination Committee (ECC) of the Cabinet has approved the E-10 Ex-Depot sale price based on the denatured Ethanol distillery quoted price of Rs.36.50 per litre and maintaining differential of Rs.2.50 per litre vis--vis normal grade Gasoline through Petroleum Levy adjustment on E-10 of Rs.6.90 per litre. The committee met under the chairmanship of Federal Minister for Finance, Mr. Shaukat Tarin at the PMs Secretariat here on Tuesday. Discussing the blending of Ethanol into motor gasoline (E-10) and pricing, the ECC gave approval to:the E-10 Ex-Depot sale price based on the denatured Ethanol distillery quoted price of Rs.36.50 per litre and maintaining differential of Rs.2.50 per litre vis--vis normal grade Gasoline through Petroleum Levy adjustment on E-10 of Rs.6.90 per litre. Mechanism/formula for determination of ex-distillery Ethanol price in the transparent manner will be worked out by the Ministry of Industries & Production in consultation with all stakeholders including PSO and OGRA so as to enable OGRA to determine/notify ex-depot sale price of E-10 per litre price as per ECC decision dated 19th May 2009. As Ethanol contains less energy, less efficiency factor will be incorporated in the pricing mechanism of E-10 subject to verification of HDIP Labs. Additional margin (return on investment) will be taken Rs.0.70 per litre (as worked out by OCAC) instead of Rs.1.00 per litre for a period of two years only. OGRA will determine/notify prices of E-10 Motor Gasoline as per ECC earlier decision on monthly basis. OGRA and HDIP shall develop appropriate mechanism for ensuring E-10 quality, as per Government notified specifications. The above arrangement would be effective for a trial period of next two years. The ECC formed a committee to analyze the issue of proposed natural gas load management programme for winter 2009-10. Committee will comprise of the Federal Ministers for Petroleum and Natural Resources, Finance, Industries, Agriculture, Textile, Water and Power and Deputy Chairman of Planning Commission. The committee will submit its report to the Cabinet. The ECC was also updated by the Ministry of Finance about the national economy. It noted with satisfaction that the monthly core inflation rate has decreased from 12.61 percent in August, 2009 to 11.9 percent in September, 2009. The meeting was informed that during the July-September 2009-10, the average CPI-based inflation stood at 10.66 percent as against 24.52 percent in the same period last year. Food inflation dipped to 10.43percent as against 32.56 percent last year. It was noted with satisfaction that the stock of wheat as on October 18, 2009 amounted to 8.733 million tons as against 2.981 million tons in the same period last year, thereby showing a higher stock of about 5.752 million tons compared with the last year. Wheat procurement target has crossed the proposed figures of 7.05 millions tons and reached at 9.233 millions tons as on 18 October 2009. Trade deficit improved by 44.7 percent to $ 3.09 billion in July-September 2009-10 from $ 5.59 billion in the same period last year. The ECC was told that the overseas workers remittances amounted to $ 2,331.5 million in July-September 2009-10 as against $ 1,879.8 million, showing an increase of 24.03 percent over the same period last year.

(THROUGH ASIA PULSE)