Iran to mediate on gas transit fee

Iranian President Mahmoud Ahmadinejad has constituted a four-member committee of officials to hold talks with Pakistan and India on the transit fee issue.

He has given the panel 45 days to settle the issue between the two countries and submit a report to him, sources in Pakistan's petroleum ministry told a daily.     

Pakistan and Iran were set to sign a bilateral gas sale purchase agreement (GSPA) for the Iran-Pakistan-India gas pipeline project by May 31 but would now sign the pact after the Iranian committee resolves the transit fee issue between Pakistan and India, the sources said.     

Pakistan and India too could sign a gas transit fee agreement when the GSPA is signed by Iran and Pakistan, they said.     

Former Pakistan Petroleum Minister Khwaja Asif and his Indian counterpart Murli Deora had announced after talks here on April 25 that the gas transit fee issue would be addressed within a short period of time but no progress has been made as yet in the matter, the sources said.     

The sources said India had offered a gas transit fee of 15 cents per million British thermal units (MMBTU) whereas Pakistan had demanded 60 cents per MMBTU. They added that India had subsequently agreed to pay 30 cents per MMBTU as transit fee.