The parliament and the relevant ministry and its stewards have grossly misguided the Prime Minister who states that he has no idea of reducing the petroleum prices and the only option is to provide subsidy that the government cannot afford. Others who are not in the government frequently declare that mid-term elections is the only solution to ward off the danger of a bloody revolution creating unrest amongst the people of Pakistan.
I have great respect and regard for the founder of the Pakistan People's Party, Shaheed Zulfiqar Ali Bhutto and Shaheed Benazir Bhutto and I am of the considered opinion that the present government must complete its term. The present government is a coalition government with Pakistan People's Party as its major partner. I feel disturbed that the coalition partners are also not giving any good idea and are instead engaged with others in agitation with warnings of a revolution.
It is commonly argued that due to long periods of martial law regimes, the country's institutions have been damaged and the economy is in shambles. However, in present dispensation a number of parliamentarians and those appointed as chief stewards in the organisations/institutions of Pakistan lack educational and professional qualifications to run/streamline the affairs. Consequently, the entire system including the economy of the country is in its present shabby state.
It is high time for each and every educated professional citizen to suggest ways and means to streamline the economy, provide relief to the downtrodden people and strengthen democracy rather than to incite them for politics of agitation. The fuel prices are fundamentally responsible for exorbitant and unbearable rise in prices of all commodities, transport etc. In this context, I suggest the following for the immediate consideration of the government to provide relief to the people of Pakistan.
-- The premium price of "Light Sweet Crude -namely Brent, West Texas Intermediate, Ninian crude oil is quoted but neither Pakistan imports such crude oil nor any Pakistani refineries refine these premium grades of light sweet crude oils. It is unfair and misleading on the part of government to quote the prices of premium priced crudes.
-- The price of Light Sweet Crudes is considered as a Bench Mark for fixation of other Heavy/Light Sour crude oils. Consequently any rise/fall is reflected in all other Sour crude oils.
-- Pakistan imports Heavy/Light Arabian crude from Saudi Arabia, crudes from the Gulf States and Iran. Crude oils used by Pakistani refineries are also available from Malaysia, Indonesia, Nigeria and other countries. A comparative analysis of the crude properties such as its viscosity, specific gravity, yield, sulphur, carbon and other contents including its calorific value is to be made by the officials appointed by the government. The government should review such analytical reports each month and obtain crude oils from the cheapest source.
-- The number of Rig Counts for oil exploration is not a measure of performance and success. The rig excavated having no oil is considered as a "dry hole"; even if oil is found and assessments reveal its use as uneconomical; the hole is considered as a "dry hole". Millions of rupees are thus wasted in this way. The crude oil wells having crude must regularly be pumped with carbon dioxide to obtain more oil.
-- Some three years back the government declared that crude obtained in Pakistan was 3.2 million tons; since then some two hundred and thirty rigs have been excavated and now the crude obtained should have reached to over 4 million tons. We do not have enough storage capacity; so further rigs excavation must be stopped to avoid further losses.
-- Firstly, the government should note the quantity of crude loaded by tankers from the bunkering ports; secondly, the quantity of crude discharged at ports in Pakistan and the wharfage charges by the port authorities; thirdly the quantity of crude received at the refineries. This will reveal startling facts of corruption and theft.
-- The government recently stated that the refineries did not provide the details of petroleum products to the authority that fixed the prices. In the absence of such details it is a mad man's dream to fix prices of gasoline, diesel and kerosene oil that actually affects the people of Pakistan.
-- The prices of petrol, diesel and kerosene oil that directly affects the people should be fixed in strict conformity with "Ogra ordinance" wherein it is mentioned that these prices shall be fixed in consideration of providing relief to the people of Pakistan.
-- The incorrect policy to award "First Right of Refusal" and "Exclusive Right of Transportation of Crude to refineries" to PNSC in clear violation of the" Ogra ordinance" and that of "Competition Commission of Pakistan", must immediately be withdrawn. Open tenders should be invited that would result in reducing the cost of transportation thereby reducing the price of gasoline, diesel, kerosene and other products by at least three/four rupees per liter. Furthermore, private entrepreneurs will invest in shipping, our fleet will increase creating more job opportunities and reduce our dependence on foreign flag ships to cater our seaborne trade thereby savings of millions of dollars in foreign exchange.
-- In a number of Pakistani refineries a major portion of virgin crude is directly led to the furnace oil chamber. It is imperative to install "hydro crackers" and "Catalytic/Thermal Crackers" to obtain a further yield of 32-35% of diesel and 20-22% of petrol and in the second case a further yield of 32-35 % of petrol and 20-22% further yield of diesel. The refineries may decide to install these crackers in accordance with national requirements. Our present dependence on import of diesel costing Pakistan millions of dollars shall thus be saved. The "deemed duty" is charged on imports of diesel but the same duty is charged on our own produced diesel as well which is quite unfair and should be stopped. The installation of crackers shall also reduce the price of diesel and petrol at least by some Rs 28.00 per liter.
-- The crude obtained in Pakistan can only be processed/refined at Attock Refinery; after certain modification and BMR other refineries shall also be able to process/refine crude obtained from Pakistan thereby savings of our import bill and if God willing with the oil obtained from Pakistani wells all domestic requirements of crude can easily be met. This will reduce our bills for import of crude. The cost of petroleum products shall also be reduced by 60-70%.
-- Due to global warming and climate change the entire world is confronted with the havocs of earthquakes, tsunamis, floods, stormy seas, melting of glaciers at astounding rates, drop in agricultural products, causing major portions of earth becoming inhabitable and barren, mass migration of people, loss of human lives and property, droughts, spread of deadly diseases etc. All this necessitated the world to reduce emission of "Greenhouse Gases" mainly due to the use of fossil fuels. The developed part of the world has adopted "EURO IV" standards for petroleum products; even India has managed "EURO IV" standards where the petroleum products contain a maximum of 50 ppm of sulphur and reduced other greenhouse gases. The environmentalists further suggest that by the year 2020 the quality of petroleum products shall further be improved to contain 10 ppm of sulphur. The price of such petroleum products have been increased but in Pakistan the petroleum products contain 1000-2000 ppm of sulphur and use of these products is highly detrimental to human life and even to the existence of the planet.
-- Petroleum Development Levy charges are taken by the government since early 50s. According to a rough estimate over trillions of dollars have been received by successive governments. Where are these huge amounts and what developments have been made?
-- Pakistan must upgrade its refineries to obtain "EURO IV" standards of petroleum products since it is apprehended in the wake of disasters caused due to global warming-climate change that no nation shall be allowed to use below standard specification of petroleum products in near future even the threat of UN sanctions is in the offing.
-- Pakistan has five refineries having a total refining capacity of 12.6 million tons of crude annually. All the refineries are not working to their full capacity. The government must look into this and initiate corrective steps in the larger interest of the country.