ISLAMABAD - AHMAD AHMADANI - The ECC in its today’s meeting is likely to approve the ‘controversial and impracticable’ summary of petroleum ministry seeking complete de-regulation of HOBC price and weekly price determination of POL products, thanks to the ever-ill vision of the government gurus.
However, when contacted with financial wizards, they have argued that in yet another controversial move, the Ministry of Petroleum and Natural Resources (MPNR) has sought the nod of economic coordination committee (ECC) of the cabinet though the economy of financially ravaged people of Pakistan and the fragile financial health of country’s economy do not permit to put extra burden on them yet the influential owners of refineries persuaded the high ups at Petroleum Ministry to ensure more profits for them. They were of the view that after the ECC approval shortage and hoarding of POL products would be on rise in the country, as no businessman would bear loss if he or she had bought the product on high rates. Even transporters are found not willing to decrease the transport fares though a major reduction in the prices of POL products announced two times in last one month.
They have further argued that declining trend of oil prices is not permanent in the international market so if POL prices witness upward trend then what will be with the masses already bearing the brunt of fortnightly oil pricing mechanism from last month. They said that over burdened masses would now face the music owing to weekly oil pricing if approved by the ECC following the fortnightly oil pricing.
“Following the fortnightly POL pricing, weekly oil pricing in the country is after the persistent demands of refineries only to multiply monetary benefits”, a financial wizard said, adding high ups at Petroleum Ministry were found hell bent to ensure benefits for the influential owners of refineries.
Well-placed sources privy to development informed that ECC is likely to approve the summary of MP&NR looking for absolute de-regulation of the price of high octane blended component (HOBC) and weekly price determination of petroleum oil and lubricant (POL) products in its today’s meeting. They said the MP&NR has decided to completely de-regulate the price of HOBC in light of the report of Justice (Retd) Bhagwan Das Commission. After getting the ECC approval, price of high octane would witness a decrease by Rs1.60 per litre in the port city of Karachi while Rs3.62/litre reduction only this time in rest of the provinces other than Sindh. Consequently, consumers would be different prices of HOBC in all big cities of the country.
Sources further told that Pak Arab Refinery Ltd (Parco) is the sole refinery in the country that produced HOBC to meet the demands. Monthly consumption of high octane is one thousand and twelve hundred tons. They said prices of Petrol, High Speed Diesel (HSD), Light Diesel Oil (LDO), and HOBC have already been partially controlled de-regulated. Besides, Petrol, rest of POL products would also be de-regulated in the light of Justice Bhagwan Das Commission’s report.
It is worth mentioning here that despite strong opposition by Oil and Gas Regulatory Authority (Ogra), the Economic Coordination Committee of the Cabinet had approved much controversial fortnightly oil pricing instead of thirty days on 6th April 2012.
Besides, in order to provide macro-economic stability, the regulator had already suggested that the federal government may, for the time being, switch over to fixation/ determination of prices either on quarterly or six months basis. The regulatory body in its suggestion highlighted that Indian government has not revised domestic oil prices for an extended period of time to protect the common man. Again, complete deregulation of petroleum products prices may also be considered when prices are stable or declining.
“India had not raised the prices of petrol, kerosene and diesel since 01-12-2011. India revised petrol price from 63.37 (Indian rupee) to 65.64 per litre during 15-05-11 to 01-12-2011”, sources said.