The government's decision to raise prices of petroleum products has triggered a negative reaction from the masses and opposition parties. The move to massively hike prices overnight has also raised several questions.
Petroleum prices are linked with import prices of
The Petroleum Division had been earlier trying to switch to fortnightly oil price reviews instead of monthly revisions. In that regard, it had sent a summary to the Economic Coordination Committee, which was not approved.
Special Assistant to Prime Minister (SAPM) on Petroleum
The summary for petroleum price revision has always been routed through the
This time, the Finance Division prepared a summary and sent to the Petroleum Division, which was contrary to the set mechanism.
Now, the question is whether these figures had been verified By: Ogra or not. The regulator also notifies the inland freight equalisation margin (IFEM), which is an important part of the oil pricing mechanism. A Petroleum Division spokesperson told
'On Friday, Ogra and the Petroleum Division again verified the figures before conveying prices to PSO and the oil industry. There was no violation but work was done expeditiously due to urgency in order to avoid dryout,' he added.
Federal Minister for Petroleum
He said sales of petrol increased 92% in the first 10 days of June despite the lockdown and movement was slow, adding that there were 500 illegal licences of retail outlets and the government was going to take action against them.
He said the government had asked OMCs to provide a list of their licensed retail outlets and illegal pumps would be closed. The minister said petrol prices rose a sharp 112% but the government gave relief to the public By: only raising the price By: 25%. Addressing the press conference with the SAPM on petroleum, he said petroleum prices in
The energy minister said on PM's directive, the duration for petrol price revision has now been set at 35 days. 'We are fighting with the mafia and hoarders,' he remarked. Meanwhile, Babar said before
Increase in taxes
Experts call it an unwise decision, which will spark a backlash. They say the government should have staggered the impact as it had a big room in the petroleum development levy for adjustment. At present, the government is charging
However, the government did not touch the levy and reduced the import price of petrol and diesel, which the oil industry says will add to its miseries. At present, the government is charging
© Pakistan Press International, source