ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA), on Wednesday, informed a parliamentary panel that increase in prices of petroleum products internationally and devaluation of the currency are the main reasons behind the hike in prices locally.

The Senate Standing Committee on Cabinet Secretariat, which met with Rana Maqbool Ahmed in the chair discussed recent exorbitant price hike in petrol and diesel products, causes and remedial measures to reduce the suffering of the poor people.

The chairman committee questioned the chairman OGRA as to why LNG supplies were not secured in January this year when prices were very low, to which, the chairman OGRA replied that 70 percent of the supplies are secured through long term contracts but 30 percent are based on, on-spot purchase as per global practice.

Committee members’ questioned the chairman OGRA regarding recent hike in petroleum products prices, which is causing great wave of inflation in Pakistan.

The chairman OGRA was of the view that increase in prices of petroleum internationally and devaluation of the currency are the main reasons behind the hike in prices locally.

The chairman committee questioned as to why the oil marketing companies are allowed to sell their products at increased rates when they already have previously purchased stocks, which they had bought at lower rates.

The chairman OGRA argued that same goes for when the prices are reduced. Oil marketing companies sell their products at lower prices when the prices of oil are reduced locally.

The chairman committee asked the chairman OGRA to play his part for providing relief to the common public, which is already under a huge burden due to the ever rising inflation.

At present, prices of petroleum products in Pakistan are determined as per “pricing of petroleum products policy” of the Ministry of Energy (Petroleum Division) notified vide letter No PL-3(457)/2019 dated 24 August 2020.

As per the existing policy, prices of petrol (MS) and diesel (HSD) are linked with average of “Daily Arab Gulf Prices”, PSO’s Premium and its incidental costs of cargos imported during previous fortnight period. Prices of MS and HSD in the country are directly linked with international prices of petroleum products and dollar rupee parity.

The development of storages at large scale similar to India and China was suggested to absorb abrupt price hike in international market. Further, industry cargo size needs to be enhanced up to 60,000 to 80,000 M Tons to save freight, premiums etc and necessary facilities be developed to cope with interlink challenges at ports.

The chairman committee expressed dissatisfaction over explanation provided by the OGRA officials and decided to discuss the matter further in the next meeting of the committee.

The committee also discussed recent exorbitant price hike of electricity in the country.

The chairman NEPRA was questioned by committee members regarding inefficiency of LESCO and other distributions companies. Chairman NEPRA said that all the distribution companies come under direct control of the Ministry of Power, which is the relevant Forum for these kinds of queries and the NEPRA does not have the power to hold accountable or remove heads of these distribution companies.

The chairman NEPRA attributed these recent price hikes to line losses and theft.

He further said authority has already recommended to the government for privatisation all the electricity distribution companies.

The chairman committee said that electricity bills have swollen and gone beyond the reach of the common man and consumers are being charged for line losses, which is very unfair.

The committee was also briefed that 26 percent shares of the PTCL were privatised in 2006 through a bidding process.

Etisalat acquired these shares. Committee was further informed that around $800 million proceeds of privatisation have still not been recovered from Etisalat. As per the agreement total of 3,263 properties were to be transferred to Etisalat out of which 3,230 properties have been transferred and 33 properties could not be transferred due to certain unavoidable circumstances.

The chairman committee expressed his reservations regarding the whole process of privatisation and commented that “why public money is still languishing for the last 15 years. Someone must be held accountable for this delay”.

The PTA official informed the committee that matter comes under the ambit of Privatisation Commission and the Ministry of Finance.

The chairman committee directed to summon the officials of Privatisation Commission along with all the related record of the PTCL privatisation in the next meeting of the committee.

The committee also took up the matter of health hazards caused by mobile transmission towers of telecommunication companies.

The PTA informed that safety guidelines regarding height and power intensity of such equipment have been issued to companies as per global practice for compliance and authority also monitors the situation independently.

The PTA further informed that 4G mobile licenses have been issued to mobile companies for providing fast mobile broadband services in the AJK and the GB.

A public petition regarding framing of recruitment rules in respect of regularisation of civil gazetted officers of BPS -17 HOS frontier corps KP (South) was also taken up.

Chairman committee directed officials of the Establishment Division to resolve the matter at the earliest in coordination with the Ministry of Finance and the Ministry of Interior.

Discussion on public petition pertaining to PTDC was deferred due to absence of officials from the government of Balochistan.

The chairman committee lamented the continued absence of the chief secretary Balochistan and directed to write a letter to him for the last time or the law will take its course.

The chairman committee appreciated Pakistan Cricket Team’s remarkable performance against India and New Zealand and also felicitated the whole nation for such an emphatic victory.

Chairman Committee Rana Maqbool Ahmed termed the cricket team’s victory as an “unimaginable achievement”.

The chairman committee further informed the members that Indian government and the Hindutva clergy have taken this Pakistani victory as a pinch of salt, which speaks volumes about the Indian myopic mindset and lack of sportsmanship spirit.

“It’s a matter of sorrow that strong violent reactions are witnessed in the Indian cities in general and in Indian Occupied Kashmir in particular. In Srinagar, cases are registered against the students of colleges and universities for the innocent student’s mere, celebration and the happiness over the victory of Pakistani team. There is a trajectory of Indian atrocities against the innocent students, young men and elderly people living in the IOJ&K. Flagrant violation of human rights is being perpetrated against the courageous Kashmiri people.”

The committee, unanimously, passed its resolution condemning in strongest possible terms the Indian inhumane and illegal actions against the Indian Muslims and Kashmiri youth.

The committee was attended by senators, Saifullah Sarwar Khan Nyazee, Kamil Ali Agha, Sarfaraz Ahmed Bhugti, Khalida Ateeb, Maula Bux Chandio, Engr Rukhsana Zuberi, Saadia Abbasi, Muhammad Talha Mahmood, officials from Cabinet Secretariat, chairman OGRA, chairman NEPRA, and chairman PTA.

Copyright Business Recorder, 2021