PAC recommends cut in petrol price due to drop in international rates

The Public Accounts Committee (PAC) on Wednesday recommended a reduction in the prices of petroleum products following a significant drop in oil prices internationally, Aaj News reported.

While chairing the PAC committee, Noor Alam Khan, said that prices of petroleum products have reduced significantly in the international market.

“However, the government further increased the petrol price by Rs15 rupees per litre last week, instead of decreasing,” he said, urging the ministries of finance and energy to take necessary measures in this regard.

Oil plummeted about 9% on Tuesday in the biggest daily drop since March on growing fears of a global recession and lockdowns in China that could slash demand.

However, prices rose on Wednesday, clawing back some of Tuesday’s heavy losses as supply concerns returned to the forefront and outweighed lingering worries over a global recession.

Brent crude futures rose by $1.62, or 1.58%, to $104.39 a barrel at 0839 GMT. U.S. West Texas Intermediate (WTI) crude climbed $1.04, or 1.05%, to $100.54 a barrel after closing below $100 in the previous session for the first time since late April.

Speaking on the occasion, Sheikh Rohail Asghar of the Pakistan Muslim League-Nawaz (PML-N) said that the reduction in the international prices is equivalent to Rs50 per litre, which should be passed on to the public.

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He said that the International Monetary Fund (IMF) is already pressing the government to further increase the general sales tax (GST) on petroleum products, which could further jack up the price of the commodity.

Rohail also took up the matter of Rs200-billion alleged corruption in the National Bank of Pakistan (NBP). He said that Transparency International had exposed the scandal, a report of which has been received by the Public Accounts Committee as well.

The committee also expressed displeasure over the absence of the special secretary of finance and issued summon notices to him and the Governor State Bank.

“The governor and the special secretary will bear expenses of the next PAC meeting if they fail to attend,” the PAC chairman added.