Capped oil prices may cost exchequer $11 billion by June 30: policy-makers brief president

The policy-makers on Wednesday informed President Pervez Musharraf that inflating oil bill was making for the government difficult to manage budgetary pressure and continuity of the current policy of capping the prices may cost the national exchequer 11 billion dollar by June 30.
Sources said the government authorities gave a detailed presentation to the President covering the oil prices in the international market, its impact on Pakistan''s economy and budgetary estimates for 2007-08, demand and supply situation of gas and electricity.
The President asked the authorities of the Ministry of Petroleum (MoP) to skip the part of the presentation, indicating the pressure of high oil prices on the economy and suggesting immediate reversal of the capped policy for oil prices. The President told the presenter that he knew the facts and the pressure of capped oil prices on the overall economic situation and this part of the presentation needs not to repeat time and again.
The increasing oil prices are a serious worry for the government and its concerned ministries/departments are continuously persuading the President for couple of months to let them pass on to the consumers to reduce its pressure on budgetary estimates. The President who had rejected the proposal prior to his weeklong visit to Europe this month did not agree with the MoP for another time to revise the oil prices.
He asked the authorities to focus on coal utilisation for enhancing electricity production to minimise loadshedding duration as early as possible. The President''s concern is upcoming elections and he wants the government to keep on absorbing oil prices whatsoever and take any decision for a change after the general elections scheduled for February 18.
The apparent logic is to hold back the public criticism on the former PML (Q)-led coalition government. PML (Q) Chief Shujaat Hussain had also demanded of the President some three weeks back not to increase oil prices before the general elections.
Sources said on reducing pressure and introduction of load management the authorities told the President that distribution companies were supply 100 percent more gas to domestic sector to protect the people from harsh winter.
He was informed that gas supply to CNG stations and other consumers will come to normal level with change in winter in next 15 days. As a long spell of harsh winter season is continuing, SNGPL and SSGC are supplying 1600 MMCFD gas to the domestic sector against normal 900 MMCFD and this situation is likely to continue for another 10 to 15 days.