The Oil and Gas Regulatory Authority (Ogra) has calculated increase of up to Rs 8.67 per litre in POL prices, keeping in view the global crude oil prices, which has crossed $125 per barrel in Arabian Gulf Market. This was revealed before the special committee constituted by Speaker National Assembly after increase of petrol prices on February 1.
The special panel of public representatives failed to convince energy and planning manager for provision of relief in petroleum prices, however Ogra has calculated expected hike in petroleum prices for the month of March up to Rs 8.67. The meeting of special panel of public representatives in National Assembly, which was formed on the direction of Fehmida Mirza, Speaker National Assembly on February 15, ended inconclusive and will meet again today (Wednesday) with foggy line of action.
Price determination authority of POL products, Ogra has completed its working regarding the extra-large price hike in POL products for the upcoming month of March, ie, up-to Rs 8.67 per litre and sent it to federal government for final approval.
Interestingly, according to notification issued by NA secretariat, the special committee was bound to resolve the issue within one week, however the committee couldn''t reach any conclusion to define the clear mechanism of controlling price hike in petroleum, oil and lubricant (POL) products.
Another important thing is that committee was constituted four members, including Riaz Hussain Pirzada from Pakistan Muslim League-Q, Rana Tanveer Hussain Pakistan Muslim League -N, Farooq Sattar from Muttahida Qaumi Movement (MQM) and Khurram Dastagir also from PML-N, while Khurram Dastagir, the member of opposition party (PML-N) is yet to be attended a single meeting during all three previous episodes.
Sources informed that Hafeez Sheikh, Advisor to Prime Minister on Finance and Revenue was of the view that it was not possible to reduce POL prices saying that prices of petroleum products are linked with the global market, while government only receives 16 percent General Sales Tax (GST) and Rs 10 per litre Petroleum Levy (PL) on petrol and Rs 6.5 per litre on High Speed Diesel (HSD).
According to FBR officials, this year''s GST collection on POL products has reached Rs 146 billion against last year''s collection of Rs 114 billion. Furthermore the government has set a revenue target of Rs 120 billion under the head of PL on petroleum products but so far has collected only Rs 30 billion, which is Rs 45 billion below the target.
Chair of the Committee, who also has been holding the office as federal minister for water and power Syed Naveed Qamar converted the open meeting into in-camera session to avoid the access of media to avert the public anger over extra-large expected hike in the month of March.
However, sources informed that Dr Nadeem-ul-Haq, Deputy Chairman Planning Commission laid the proposal before committee to provide subsidy in the shape of discount cards for motorcyclists, while cars and heavy vehicles couldn''t be able to avail this offer. Rana Tanveer Hussain from PML-N proposed federal finance and planning manager to decrease the petroleum levy up to 50 percent that could be helpful in declining the POL prices for next month, while Farooq Sattar was of the view that by decreasing Sales Tax (ST) on POL products the extra-large hike could be decreased.