The Senate Standing Committee on Cabinet Secretariat has expressed serious concern and resentment over more than Rs 30 per litre tax on petroleum products and recent 10 percent to 143 percent increase in gas prices. The committee met with Senator Muhammad Talha Mehmood in the chair at Parliament House on Wednesday. The committee discussed the issues relating to gas and petroleum products as well as exiting working mechanism of Oil and Gas Regulatory Authority (Ogra).
Ogra Chairperson Uzma Adil Khan told the committee that the government is collecting 17 percent sales tax and Rs 10 to Rs 18 Petroleum Levy Tax per litre on petroleum products including Rs 14 per litre on petrol and Rs 18 per litre on diesel, etc. She said that high-octane petrol is de-regulated and various companies have different rates of this product. Senator Talha Mehmood said that price of petroleum products is very low at international level while the government is imposing heavy taxes on petroleum and gas products. He said, "The government is not giving relief to the people. The people are receiving gas bills of Rs 40,000 to Rs 50,000 instead of Rs 2,000."
It was told to the committee that Pakistan is facing shortage of gas as its production is reducing 8 percent every year. The total production of gas included 65 percent in Sindh, 13 percent in Balochistan, 10 percent in Khyber Pakhtunkhwa (KP), 2 to 3 percent in Punjab, and other areas. An official of Ministry of Energy told the committee that first priority is being given to domestic consumers for providing gas, second priority is given to export-oriented industries, third is power and fertilizer sectors, fourth is cement factories and last priority is compressed natural gas (CNG) sector. He said that the government is recovering 45 percent of the bills and giving 55 percent subsidy to the consumers.
He said that there was Rs 12 billion receivable amount from CNG sector under Gas Infrastructure Development Cess (GIDC) out of which Rs 6 billion have been received as the first instalment. However, he said that the owners of CNGs have approached the court and now matter is in litigation.
Secretary Ministry of Energy and Power Division Irfan Ali told the committee that settlement has almost been made with Saudi Arabia for establishment of oil refinery in Gwadar. He said that Pakistan imports $14 worth petrochemicals annually.
The DG Petroleum said that as many as 10 blocks have been auctioned for exploration of oil and gas in various areas of the country. Senators Najma Hameed, Rubina Khalid, Naseebullah Bazai, Sitara Ayaz, Dr Asad Ashraf, Dr Ashok Kumar and Dr Sikandar Mandhro, and others participated in the meeting.