In the backdrop of a resolution passed by the National Assembly, the Economic Coordination Committee (ECC) of the cabinet is likely to give a go-ahead to switch to a monthly oil pricing mechanism.
According to sources, the Ministry of Petroleum and Natural Resources will table the summary before the ECC which is scheduled to meet tomorrow (Tuesday) for its approval to revert to a monthly oil pricing mechanism instead of the current weekly review. The controversial weekly price review mechanism was also suspended by the government after giving an undertaking in the Supreme Court last month.
Sources said the ministry prepared a summary to shift the weekly oil price mechanism to a monthly one following the unanimous adoption of a resolution by the National Assembly to switch to the old oil pricing mechanism. The government has also been seen to repeatedly ignore the continuous recommendations of the National Assembly Standing Committee on Petroleum and Natural Resources and the Oil and Gas Regulatory Authority (OGRA) to switch to the old oil pricing mechanism. The Ministry of Finance and OGRA had already opposed to the price review on a weekly basis when the summary was first tabled before the ECC for approval, but their concerns were not addressed. OGRA was of the view that the current price review was being exploited by refineries, oil marketing companies and hoarders. According to an official associated with OGRA, his department will support the Petroleum Ministry’s summary if they (the ministry) will seek approval from ECC for reverting back to the monthly price review of oil.