Government decided on Monday to keep oil prices unchanged after facing political pressure from different parties effective from February 1, 2011 (today). Oil and Gas Regulatory Authority (Ogra) has issued notification in this regard.
The government further reduced petroleum levy (PL) to absorb rising impact of oil prices as petrol by 49 percent, HOBC by 35 percent, kerosene oil 100 percent and high speed diesel (HSD) by 87 percent. The price of petroleum products will be as under:
Petrol Rs 72.96 per litre, HOBC Rs 86.67 per litre, HSD Rs 78.33 per litre, LDO Rs 66.61 per litre, kerosene oil Rs 70.95 per litre, JP-1 Rs 68.48 per litre, JP-4 Rs 65.11 per litre and JP-8 Rs 68.19 per litre. "Government will have to face revenue loss of Rs 6.6 billion due to keeping oil prices unchanged," sources said.
Before taking formal decision on petroleum products prices, Parliamentary Committee on Oil Pricing held a meeting to seek views of all political parties' representatives who opposed any move on the part of government to raise oil prices from February 1 (Tuesday). Representatives of political parties were of the view that government should improve its fiscal management to enhance revenue.
MQM representative said that government was giving Rs 200 billion subsidy on agriculture that should be abolished. Awami National Party (ANP) representative Haji Adeel opposed implementation of deregulation of Inland Freight Equalisation Margin (IFEM). "ANP will not accept implementation of IFEM if it causes increase in oil prices in Khyberpakhtunkhwa," he said and supported uniform rate of oil prices in the country.
After meeting of Parliamentary Committee on Oil Pricing, Petroleum Minister Syed Naveed Qamar held a meeting with Prime Minister Syed Yousuf Raza Gilani and suggested to keep oil prices unchanged due to opposition of political parties. Prime Minister was also to take decision regarding implementation of deregulation of IFEM," sources said adding that Prime Minister did not take any decision to this effect due to opposition of ANP.
While addressing a press conference, Ogra spokesman Syed Jawad Naseem said that import incidental had been excluded from the ex refinery price as per first phase of Economic Co-ordination Committee (ECC) of Cabinet on deregulation of petroleum products. "Distributor and dealer margin for MS, HOBC, Kerosene oil and LDO have been fixed in line with ECC decision, he added.
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