ISLAMABAD, March 5: Iran has given a deadline of March 19 to Pakistan to come up with a final gas price formula for the Iran-Pakistan-India pipeline project.

“The next couple of weeks are important. So, we are working to agree on a reasonable price formula,” Petroleum Secretary Mohammad Saleem Mehmud told the Senate Standing Committee on Petroleum and Natural Resources here on Thursday.

A lack of agreement on gas price has marred the prospects of the project.

Pakistan had first agreed to pay around 50 per cent of the international crude price and later it raised its offer to 60 per cent and now (according to official sources) to 70 per cent. But, Iran is reluctant to reduce its demand of 78 per cent.

The petroleum secretary informed the meeting that industrial and domestic consumers would be not able to afford the expensive Iran gas. It could only be used for power generation.

The committee asked the government to review recent increase in gas prices, especially for domestic consumers, because the raise was unjustified and uncalled for.

The ministry of petroleum was asked to encourage exploration, besides importing natural and liquefied natural gas.

The meeting chaired by Syed Dilawar Abbas was informed that the Pakistan State Oil needed cash because it had suffered a loss of Rs10 billion in the past six months. It expressed concern over the rising debt of the PSO and advised the government to settle the issue of outstanding dues of power producers.

The Senate panel asked the government to reduce oil prices to provide relief to the common man after the recent decline in international crude prices.
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