Minister informs NA panel: Oil prices to go up in March
ISLAMABAD: The special parliamentary committee on oil prices constituted by National Assembly Speaker Dr Fehmida Mirza on Friday was informed that prices of petroleum products would further increase in March due to hike in oil price at global level.
The committee which met here to review oil prices was informed by Syed Naveed Qamar, Federal Minister for Water and Power that oil prices would further increase in March due to raise in global oil prices. "Therefore, the committee should focus on taking measures to reduce oil prices in coming month rather than reducing the prices in current month," Qamar added.
The committee sought a detailed briefing from Oil and Gas Regulatory Authority (Ogra) about hike in international prices and impact passed on to the domestic consumers in the next meeting. Ogra briefed the committee about ex-refinery price, Inland Freight Equalization Margin (IFEM), General Sales Tax (GST) and Petroleum Levy (PL) on petroleum products.
Ogra Chairman Sabir Hussain informed the committee that actual prices of petrol and high speed diesel (HSD) were Rs 64.67 per liter and Rs77.25 per liter, respectively. "The consumers are paying Rs 30.24 per liter on petrol and Rs 26.21 per liter on diesel on account of taxes, dealers and distribution margins," he added.
The special committee on oil prices was formed by National Assembly Speaker Dr Fehmida Mirza on Wednesday to review the petroleum prices almost fortnightly after the lower house unanimously passed a resolution to withdraw the recent hike in prices.
The special committee met with Water and Power Minister Syed Naveed Qamar in the chair to consider measures to reduce oil prices. Three members committee including Rana Tanveer Pakistan Muslim League (PML-N), Farooq Sattar (MQM) and Riaz Peerzada (PML-Q) also attended the meeting.
The special parliamentary panel will meet again on February 22 to consider steps to reduce oil prices.
Two members of the committee Farooq Sattar and Rana Tanveer proposed to change the mechanism of transportation charges on petroleum products.
The finance ministry officials informed the committee that the government had set a target of Rs 120 billion revenue through Petroleum Levy (PL) on petroleum products during current financial year. "However, the government received Rs 33 billion on account of PL on petroleum products against the target of Rs 65 billion set for first six months of current financial year," they said, adding that PL had been approved by the Parliament.
They further said the State Bank of Pakistan had printed new currency notes worth Rs 145 billion in the ongoing financial year and currency notes worth Rs 300 billion were printed in financial year 2010-11. The Finance Ministry's representatives also said the government would lose billions of rupees revenue if it reduces price of petrol and High Speed Diesel (HSD) by Rs 1 per liter.
Committee member Farooq Sattar from MQM also snubbed the finance ministry officials saying "mind your own business". "We want to reduce oil prices more than Rs 1 per liter during the current month," he said.
Rana Tanveer of PML-N said the finance ministry got budget approved from Parliament for the ongoing financial year in a hurry. "If the government ends inefficiencies and corruption in government departments, it will not require imposition of petroleum levy," Tanveer said, adding that there have been talks to print new currency notes.
He proposed that government should print currency notes worth Rs 250 billion to Rs 300 billion once to end circular debt, so that energy system could operate smoothly.
Riaz Peerzada said hike in diesel prices had badly hit transport and agriculture sectors. "The government should take measures to improve the economy to generate employment opportunities," he said, adding that prices of oil should be reduced to provide relief to the consumers.