Withdrawal of notification: new petroleum price mechanism causing delay, PAC told

The new mechanism for determination of petroleum prices in the country was causing a delay in the issuance of the withdrawal of notification against recent increase, despite the Prime Minister's directives, the Ministry of Petroleum told the Public Accounts Committee (PAC) on Wednesday.
The PAC took notice of the delay in reverting recent increase in prices of petroleum products in the country and inquired the Secretary Petroleum. The Federal Ministry of Petroleum approved on February 29 a change of price of kerosene oil, light-speed diesel and other POL products, but withdrew after intervention by the Prime Minister. However, the oil was sold on new price. Secretary Petroleum Abid Saeed said there was a mechanism to fix the prices of petroleum in consultation with Oil and Gas Regulatory Authority (Ogra). The new formula was approved by the government keeping in view of recommendations of parliamentarians and a sub-committee of the Cabinet, which changed from fortnightly to a monthly review.
The monthly review of prices was taken international prices, dealer margins, oil companies margins, sale tax and petroleum development levy (PDL). He said the ministry had to adjust the impact of prices in any head, therefore, it consulted with Finance Ministry either to adjust in PDL or to make some other adjustment, causing delay in issuance of notification in this regard. The PAC, which met with Nadeem Afzal Gondal in the chair, took notice of the matter of recent 20 percent increase in salaries of AGPR and Federal Secretariat.