The Economic Co-ordination Committee (ECC) of Cabinet is likely to approve a monthly oil pricing mechanism. According to the sources, the Ministry of Petroleum and Natural Resources will table the summery before the Economic Co-ordination Committee of the Cabinet which is scheduled to meet on Tuesday for its approval to revert to a monthly oil pricing mechanism instead of the current weekly review.
The controversial weekly price review mechanism is also suspended by the government after giving undertaking in the Supreme Court of Pakistan last month.
Sources said the Ministry of Petroleum prepared a summery to shift the weekly oil price mechanism into old monthly oil pricing mechanism following a unanimous adoption of a resolution by the National Assembly to switch to the old oil pricing mechanism.
The government has also been repeatedly sat aside the continuous recommendations of the National Assembly Standing Committee on Petroleum and Natural Resources and the Oil and Gas Regulatory Authority (OGRA) to switch to the old oil pricing mechanism.
The Ministry of Finance and the Ogra had already opposed the price review on a weekly basis when the summary was tabled before the ECC for its approval, but their concerns were not addressed. Ogra was of the view that the current price review is being exploited by refineries, oil marketing companies and hoarders.