The Oil and Gas Regulatory Authority (OGRA) has decided to oppose the Petroleum Ministry’s summary that sought Economic Coordination Committee’s (ECC) approval to revise oil prices on weekly basis.
According to sources, OGRA will oppose the summary of petroleum ministry in today’s ECC meeting as it believes that determining oil prices on a weekly basis will provide an opportunity for hoarders and dealers to create artificial shortage of oil in the country.
“To fix oil prices on weekly basis is not practicable in a country like Pakistan because from the proposed move only hoarders and dealers will take benefit and rest of the price-stricken people would face more miseries as after approval, they will be on the mercy of hoarders and dealers.” sources added.
Sources further said that on demand of oil refineries, the petroleum ministry has moved a summary to the ECC seeking its approval for price revisions on weekly because the ministry believe that burden of high prices can be avoided fortnightly.
The ECC has already deferred its decision with the petroleum ministry proposing weekly oil price revisions. In the meeting ECC will consider the guarantees required for Pakistan State Oil (PSO) in an attempt to increase the period of furnace oil import from current two months credit to four months from international suppliers.
Taking up the issue of the liquefied natural gas (LNG) import project, for which the petroleum ministry has again sent a summary seeking ECC’s approval to give contract for the import of LNG. ECC will also consider exclusion of high octane blending component (HOBC) from the inland freight equalization margin and capacity payments to independent power producers.
The ECC will mull over Rs.736 million losses claimed by Independent Power Producers of gas curtailment which has generated dispute between the Ministries of Water, Power and Petroleum.
