Islamabad : In a disappointing move prime minister , Shahbaz Sharif , is said to have decided not to reduce the prices of the petroleum prices for now . Usually, Oil and Gas Regulatory Authority (OGRA) prepares a summary and send it to the prime minister office for consideration of the prime minister for any adjustment in the prices of the petroleum products .
Any decision that comes from the prime minister office on OGRA summary for adjustment in the rates of the petroleum products is announced by the Finance Division at around mid night . This time things changed altogether . Local electronic media started to flash a statement in the evening on Saturday that was linked to the prime minister relating to the prices of the petroleum products. The statement claimed that the prime minister has rejected any downward revision and decided to keep the prices of the petroleum products unchanged.
By keeping the prices of the petroleum products unchanged , the prime minister not only deprived the commuters of their lawful relief which they could get for next two weeks in the prices of the petroleum products, but also violated the law which provides that the concerned authorities will adjust any reduction or addition of the last two weeks of the crude in the international market to adjust the prices of the petroleum prices for any fortnight.
As per the law , the government was to cut the prices of the petroleum prices for the next fortnight and pass on the benefit of lowering crude prices to the commuters in Pakistan . The prime minister rather than following the law went other way around to keep the rates of the petroleum products unchanged.
Since the crude prices have reduced to $ 70 a barrel, a considerable reduction of Rs 15 per liter was expected for the commuters from March 16 to March 31 in Pakistan..
According to the media reports , the prime minister decided not to cut down the prices of the petroleum products on the pretext that his government is going to give relief to the masses in the power rates.
This justification is totally absurd as it makes no sense to deprive the commuters of the relief in the petroleum products for any possible relief in the power rates.
By keeping the prices of the petroleum products unchanged , the prime minister benefitted the entire chain of the down steam industry including Oil Marketing Companies (OMCs) , dealers and retailers as they will keep getting higher commission on sale of petroleum products for another fortnight.
Imran Bajwa added from Lahore . The federal govt has committed with IMF RS 1281 billion petroleum Levy / taxes on petroleum products in current fiscal year- 25% more than last year.
The prime reason for this inflexible approach in fixing fortnightly petroleum prices is the fact that this PL revenue provides essential petty cash to federal Govt on a daily basis.
Interesting this PL is not part of Federal Divisible pool and goes directly in the coffers and descretion of Federal Govt.
