The chairman of Senate standing committee on petroleum and natural resources, Dilawar Abbas, and the opposition on Saturday insisted that the benefits of oil price reduction in international market must reach the common man.
The opposition outrightly rejected government's claim of giving Rs 83 billion subsidy since 2004, and said: "It is a windfall gain of billions of rupees given to the oil companies at the expense of consumers."
Talking to Business Recorder here, Dilawar, who is from the ruling PML, contested government's argument of waiting for another three months to get the subsidy adjusted, provided the prices remained stable.
He contended that he already knew about the long explanation given by the minister of state for information on Friday, saying that apart from adjustments, the people must get some relief.
The committee's special meeting would be called immediately after Eid-ul-Fitr to take up the issue as before that it would be very difficult for the members to attend, many of whom belong to Balochistan, he said.
He strongly advocated for giving some relief to the masses, as POL prices had come down by some 25 percent in recent weeks. "Prices had been raised several times even when there was a dollar or two jump in the world market, but now after this sizeable plunge, prices have not been reduced," he contended.
He pointed out that there had been gradual but small increase in oil rates in the world market, but now the plunge was quite significant, mandating it for the government to review prices accordingly. Pakistan People's Party Parliamentarians spokesman Farhatullah Babar condemning the decision not to reduce POL prices despite a notable decline, billed it as an 'anti-people somersault'.
"The marginal increase in the international market thus far has been used as a pretext for windfall gains to the oil marketing firms. Now the so-called subsidy is being used as a cover to let them reap the dividend of oil price fall," he said.
The pricing formula for the petroleum products has been a hot issue, being raised by the opposition as well as the treasury lawmakers in the Parliament, but it failed to shake the government for some review.
Prime Minister Shaukat Aziz promised last week that the nation would hear good news regarding the petroleum products prices, but this bad news has been aired instead, PPPP spokesman added. He charged that the decision not to cut prices was devoid of logic, negation of the government's promises and smacked of corruption.
Talking about undue favours, he said that the oil firms were allowed Rs 2 per litre on freight charges in July 2004 and it was dramatically increased to Rs 10 in December last year. "This is how these firms have been robbing the people with the connivance of the regime," he said.
He referred to World Bank report, wherein the donor agency expressed concern over 'undue' protection being given to the oil marketing companies at the cost of consumers. He said that National Accountability Bureau initially started probing the oil price increases, but soon stalled it. He added that if the Bureau was unable to investigate the oil rates mechanism, it should stop being called an anti-corruption body.
The Muttahida Majlis-i-Amal also came down hard on the government for denying any benefit to the people, in total disregard to its commitment to adjust POL prices as per the world market trend. Hafiz Hussain Ahmed recalled that on the floor of the National Assembly, Petroleum and Natural Resources Minister Amanullah Jadoon had held out assurance on numerous occasions that prices would be reviewed keeping in view the world market.
He said that the minister this year or last year made no mention of de-linking the prices while giving assurances. "Therefore, the decision to deny relief is like backtracking from a commitment," he charged.
He questioned that if without taxes POL products could be exported to Afghanistan, which bring their prices to half of what is charged here, what is the justification for this ruthless pricing policy in Pakistan? He disputed the claim of giving subsidy, saying that almost half of POL prices are made up of taxes, most of which are totally uncalled for.
Sherry Rehman strongly reacted to government's decision to keep oil prices at current distorted levels, especially when spiralling prices of food and other commodities had crushed the ordinary wage earner under the burden of crippling inflation. "The regime's approach towards pricing reflects no consideration for the masses who are made to pay a far higher price for petroleum products compared to other countries," she observed.
She said that it had been proven time and again that petroleum products are heavily taxed in the country and thus are major source of revenue for the government. She questioned why a select few oil refinery giants were being protected at the expense of the people, and quoted a World Bank report that also argues that Pakistani consumers have been the worst victims of the regime's flawed petroleum pricing strategy.
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