The Ministry of Finance is said to be resisting the move for cut in the oil prices on the ground that dip in the international market will be used to reduce subsidy on diesel. The MoF stood firm when a proposal for downward revision in oil prices was discussed at a high-level meeting convened to review impact of international crude oil price reduction on Pakistan.
The MoF was of the view that even at the lowest rate of $111 a barrel, subsidy on one litre of diesel was around Rs 31.29. The MoF officials were of the view that benefit of dip in the crude oil price would be used for cross subsidising diesel and petrol prices to reduce subsidy.
There is mounting pressure on the government from the parliamentarians of the ruling parties that it should cut down oil prices when its rates have substantially reduced internationally in recent weeks. They also demanded action against the station- owners who are selling compressed natural gas (CNG) at exorbitant rates.
One of the ruling parliamentarians had voiced concern over overcharging of CNG prices by station owners and demanded of the Prime Minister who chaired the parliamentary party meeting of PPPP a few days back. They demanded cancellation of the licenses of all such CNG stations.
The Prime Minister will be given a presentation on the oil prices on Friday. The officials of MoF, MP&NR and Oil and Gas Regulatory Authority (Ogra) will give presentation to Yousuf Raza Gilani at Prime Minister House.
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