Islamabad: The Minister for Railways Sheikh Rasheed Ahmad has proposed a plan for Pakistan Railways to transport oil at cheaper rates, instead of building a white oil pipeline from Machike to Tarujabba – a news source reported. The minster put forth the proposal during a meeting of the Economic Coordination Committee (ECC).
As per officials, Pakistan Railways (PR) is in possession of the infrastructure required for conducting oil transportation. This move will also help PR get out of its current financial crunch.
The Oil and Gas Regulatory Authority (OGRA) Chairperson gave a presentation on the transportation of oil via the pipeline during the meeting.
The OGRA chairperson informed that the levelized tariff for oil transportation, via the pipeline to be laid by Frontier Oil Company, would amount to PKR 2,406 per ton. This figure will account for 88% of the existing road tariff.
The Petroleum Division also apprised the ECC that the white oil pipeline to be laid by Inter State Gas Systems (ISGS) from Machike (Sheikhupura) to Tarujabba (Peshawar) will cost PKR 1,075.33 per ton. This figure represents 40% of the existing road tariff.
So the ECC decided to consider cheaper commercial options for oil supply at competitive commercial rates.
