While expressing deep concern over rising trend of petroleum products, the Senate Standing Committee on Petroleum has sought the details of revenue collected under levies imposed on various petroleum products in last three months.
Meeting of Senate Standing Committee on Petroleum and Natural Resources was held under the chair of Senator Muhammad Yousaf here on Monday for detailed briefing over recent increase in the petroleum prices and CNG.
Standing committee said that once prices increased have not decreased and government put burden on price stricken masses. Senator Osman said that increase in petroleum prices should not be passed on to masses as country’s economy is weak and can not afford such massive hike. Standing committee said that government should provide subsidy in the petroleum products and reduces taxes to provide maxim relief to masses.
Petroleum Federal Secretary Dr Waqar Masood said that government was taking Rs 24.42 tax on petroleum prices which was lower in the world. He said that weekly prices determination formula was on three month trials basis adding that, if price determination would be on monthly basis then it would cause extra burden on masses which will lead massive hike in basic commodities. He said that ministry alone can not remove GST and petroleum levy from products therefore legislation is required in this regard. Committee resented the purchase of petroleum products on credit basis instead of cash.
During the meeting Chairman OGRA informed the Senators that authority compute the petroleum prices according to the formula given by the ministry. He said that OGRA informs government before price determination and final decision comes from federal government.
Secretary Finance Abdul Wajid Rana told that government was already giving Rs 2.25 billion subsidy weekly on petroleum prices and if prices were decreased by fifty percent then government would have to bear burden of extra burden of Rs 9 billion.
He said that if petroleum levy decreased then GDP would increase by 0.4 and result to inflation in the country. He suggested that federal government should take provinces on board and provinces should share tax collection with federal government to reduce prices. Officials of PSO told the committee that PSO imports 93% of crude oil and while rest 13 % has been imported by other 12 oil marketing companies. He said that major volume of crude oil has been imported from Kuwait and trade is on government level. He said that in case of shortage of any petroleum product in the country PSO floats tender in the market and ensures availability of product in the market. Standing committee asked the Secretary petroleum to give details of appointments made under provincial quota in the ministry of petroleum and natural resources and also give the details of provincial quota.