The parliamentary committee on oil pricing is to meet on Monday to decide about increase in oil prices, it is learnt. According to sources, the Ministry of Petroleum is mulling to absorb the rising impact of petrol prices by about Rs 5 per litre by implementing the decision of the Economic Co-ordination Committee (ECC) to deregulate Inland Freight Equalisation Margin (IFEM).
Sources said that the Ministry of Petroleum would present these options in a meeting of the parliamentary committee on oil pricing, led by Petroleum Minister Naveed Qamar on Monday.
The other option available with Ministry of Petroleum is to reduce the rate of deemed duty on high speed diesel (HSD). The oil refineries are charging 7.5 percent deemed duty on HSD, which the Petroleum Ministry wants to end, after resolving the issue of circular debt.
A member of the parliamentary committee on oil pricing, Sohail Mansoor, of MQM, told Business Recorder that his party would oppose the increase in petroleum products prices. He said that the government should take measures to stop massive corruption in the institutions and to generate revenue. He said that the government should take steps to stop leakage of Rs 500 billion tax in FBR. Besides this, the government should generate revenue by taking initiative to stop corruption in PIA, Railway , Pakistan Steel Mill (PSM) and other institutions, he said.
He said that the government is collecting 17 percent Petroleum Levy (PL). He said that the prices of other commodities would be increased with the escalation of petroleum products prices. He said that the government should provide subsidy on petroleum for relief to the people.