Reviewing oil prices after 15 days: Finance Ministry, Ogra oppose proposal

ISLAMABAD: The Finance Ministry and Oil and Gas Regulatory Authority (Ogra) have opposed the Petroleum Ministry’s proposal to review petroleum products’ prices after every 15 days.

It is to be mentioned here that Dr Asim Hussian decided in 2009 to fix petroleum products’ prices after every month instead of every 15 days.

According to sources in Ogra, Petroleum Ministry on February 13 dispatched a summary on a fortnightly specification of petroleum products’ prices to relevant departments.

On February 13 the Petroleum Ministry issued a circular arguing that petroleum products’ prices in the international markets are increasing with each passing day and keeping the trend in view fixation of POL prices twice a month has become inevitable.

The Petroleum Ministry was to forward the summary to Economic Coordination Committee (ECC) of the Cabinet after approval from the Finance Ministry and Ogra, but they have opposed the proposal.

The sources added that reviewing POL prices fortnightly may encourage hoarding of petroleum products which could create June 2011 like situation when a serious petrol shortage in the country compelled the government to import over 1,00,000 barrels of additional petrol.

According to sources, fixation of POL prices after 15 days would cause serious loss to the industrial sector and would fuel inflation, which is already in double digits.