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Pakistan Fuel Shortage Crisis Forces Sharif to Cancel Davos Trip

Pakistani Prime Minister Nawaz Sharif canceled a trip to attend the World Economic Forum in Davos, Switzerland, as the nation’s worst fuel shortages in memory threatened to revive street protests against him. Since the crisis began last week, he’s suspended five officials, including Pakistan State Oil Co.’s deputy chief, and has sought hourly updates on the situation. The government has sold fuel from its reserves and private companies have boosted supplies as anger grows over long waits at petrol stations. The cash-strapped distributor’s move this month to reduce shipments by 80 percent left it unable to meet a surge in demand after the government cut gas prices to match lower global costs. The Finance Ministry has arranged emergency funding to import oil, Power Minister Khawaja Asif said in a Jan. 21 text message. The crisis is a test of Pakistan’s credibility in the eyes of overseas investors, whose fivefold […]

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State of denial: Power ministry denies fuel shortage for electricity

PSO fuel imports declined 80 per cent, but ministry claims stocks will be enough. STOCK IMAGE ISLAMABAD:  In yet another sign of a lack of coordination within the government, the water and power ministry on Wednesday denied that there was a fuel shortage at power plants, claiming that power generation companies had 10 days’ worth of fuel inventory. A spokesperson for the ministry said that there was little possibility of the power crisis worsening, adding that the ministry was prepared to handle all contingencies. The statement from the water and power ministry appears to be a response to allegations leveled against them by Finance Minister Ishaq Dar at his press conference on Monday. Dar had placed the responsibility for the recent petrol shortages squarely on the petroleum ministry and water and power ministry. The statement from the ministry also contradicts the account that Finance Secretary Waqar Masood gave in […]

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Pakistan’s Sharif pulls out of Davos amid fuel crisis

Politicians are arguing over the cause of the petrol shortages Related Stories Pakistan’s Prime Minister Nawaz Sharif has pulled out of the World Economic Forum (WEF) meeting in Switzerland to tackle nationwide fuel shortages. Petrol stations in most major cities closed temporarily last week, and drivers elsewhere face huge queues. Ministers blame a huge spike in demand for the shortage, but critics say it was caused by government incompetence. Mr Sharif held a crisis meeting earlier and promised to punish those causing the problems. It is the second year running that the prime minister has pulled out of the WEF in Davos. Last year he was forced to cancel the trip because of a Taliban attack. Opposition demonstrations Pakistan has faced intermittent fuel crises for years, and Mr Sharif promised during the 2013 election to resolve the issues. Opposition supporters say government incompetence is the real cause But last […]

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Fuel Shortages Show Pakistani Struggle to Cope With Oil’s Drop

As motorists around the world enjoy the lowest fuel prices in five years thanks to surging production, Pakistanis are struggling to fill up their tanks. Pakistani Prime Minister Nawaz Sharif is racing to tackle one of the nation’s worst fuel shortages in recent memory. Since the crisis began last week, he’s suspended five officials, including Pakistan State Oil Co.’s deputy chief, and has sought hourly updates on the situation. The cash-strapped distributor’s move this month to reduce shipments by 80 percent left it unable to meet a surge in demand after the government cut gas prices to match lower global costs. The Finance Ministry has arranged emergency funding to import oil, Power Minister Khawaja Asif said in a text message yesterday. The crisis is a test of Pakistan’s credibility in the eyes of overseas investors, whose fivefold increase in purchases of the nation’s shares resulted in Asia ’s second-highest […]

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India gets $4 billion solar energy promise

India gets $4 billion solar energy pledge on sidelines of major investment conference. UPI/Stephen Shaver AHMEDABAD, India, Jan. 12 (UPI) — With New Delhi praised for its renewable energy role, Indian conglomerate Adani Enterprises said it signed a $4 billion solar agreement with a U.S. company. Adani signed a memorandum of understanding with solar energy services company SunEdison to produce enough solar panels to develop a sustainable green power sector in India. "India has embarked on an ambitious program to become a world leader in power generation from renewable technologies, and sees solar as a key part in realizing that goal," Vneet S Jaain, chief executive officer of subsidiary Adani Power Ltd., said in a statement Saturday. The agreement was signed on the sidelines of an Indian investment conference, attended by U.S. Secretary of State John Kerry . From auto giant Ford Motor Co., to companies like SunEdison, the […]

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Coal India Strike Said to Shut Half of Output, Shipments

A strike by coal miners in India , the nation’s biggest walkout in four decades, shut down about half of monopoly Coal India Ltd.’s production and shipments yesterday, said two company officials, who asked not to be identified. The strike, by all of the company’s five major unions, entered its second day after talks between Coal Secretary Anil Swarup and the unions in New Delhi failed. The unions are protesting Prime Minister Narendra Modi ’s plan to end the state’s monopoly fearing job losses and cuts in benefits. The strike will last for the planned five days as the government isn’t listening to worker concerns, said S.Q. Zama, general secretary at the Indian National Mineworkers Federation. “If this strike continues beyond a couple of days, the situation with respect to coal stock would become critical,” said Debasish Mishra, a senior director at Deloitte Touche Tohmatsu India Pvt.’s energy practice […]

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India’s Nov crude oil imports jump 17.3% on year to 4.2 mil b/d

Singapore (Platts)–15Dec2014/338 am EST/838 GMT India imported 17.25 million mt, or an average 4.21 million b/d, of crude oil in November, up 17.3% year on year, latest data obtained by shipping sources showed. The November crude imports were up 14.9% from October. India imported 1.46 million mt, or an average 356,726 b/d, of crude oil from Iran in the month under review, up 23.7% year on year. Saudi Arabia was India’s top crude oil supplier in November at 4.57 million mt. Article continues below… Platts Global Alert is a complete real-time information service for the global energy industry, providing breaking reports of deals done, price indicators for crude and products and more than 200 end-of-day assessments. The volume was up 55% year on year and also up 79.2% from October. Imports from Venezuela, the UAE and Iraq surged in November, but from Nigeria, Kuwait and Angola dropped. Imports from […]

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Russia sees promise in energy ties with India

Russian President Vladimir Putin sees promise in expanding energy ties with the expanding Indian economy. (UPI Photo/Anatoli Zhdanov) Bilateral efforts to expand cooperation in the oil and gas sector between Russia and India hold "great promise," the Kremlin said Thursday. "We are paving the way for long-term, true and mutually beneficial cooperation," Russian President Vladimir Putin said during a state visit to New Delhi. Russia is examining its energy options as Western sanctions take their toll on its economy. In July, Russian Ambassador to India Alexander Kadakin told Indian business newspaper The Hindu the Kremlin was interested in spending as much as $40 billion to build a natural gas pipeline for India. The pipeline would run along the southern border of Russian to India through the Himalayan region or mirror the route of the planned pipeline from Turkmenistan. India’s economy is expected to expand by 5.8 percent next year, […]

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Modi Window to Revamp India Economy Never Wider as Oil Dips

If Prime Minister Narendra Modi is serious about overhauling India ’s economy, 2015 presents a golden opportunity. Oil prices have fallen to a five-year low, inflation is easing, the current account deficit has narrowed and investors are betting the U.S. Federal Reserve won’t raise rates until June. Only two of India’s 29 states will hold an election next year, and Modi holds a majority in the lower house for the first time in three decades after his landslide election win in May. “Very rarely do you see something like this,” Saugata Bhattacharya, a Mumbai-based economist at Axis Bank Ltd., said in an interview last week. “What more can they possibly want?” India’s growth prospects are rising as other emerging markets including China slow down, making its benchmark stock index among the best performers this year. Modi’s ability to raise living standards among India’s 1.2 billion people hinges on engineering […]

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The Next Big Climate Question: Will India Follow China?

Michael Greenstone For more than 20 years, international climate talks have been dominated by a schism between those who created the problem of climate change (largely the United States and nations of the European Union) and those who would greatly contribute to it moving forward (largely China and India). But as climate negotiators meet in Lima, Peru, this week and next, and news reports are full of gloomy predictions that the negotiations will produce little, there are increasing signs that this stalemate may have been broken. This emerging shift is due in large part to China and its decision to break ranks and join the United States in making commitments to reduce greenhouse gas emissions. One critical question now is whether India — the country that has stood by China’s side in climate talks and is now the world’s third-largest emitter — will follow suit in a meaningful way […]

Posted On : Published By : Tom Whipple