ARIF RANA
ISLAMABAD (October 31 2007): The government is likely to pass on to the consumers Rs 2.50 on diesel and Rs 1.60 per litre on gasoline by revising petroleum prices for the next fortnight. Talking to this correspondent, a senior policy maker on Thursday said.
"There is a possibility of upward revision in petroleum prices for the next fortnight, starting from November 1, as crude oil rates are touching all time high level, making difficult for the government to absorb more difference in the prices".
The crude oil prices are ranging between $93 and 94 a barrel for the last many days. Such a high level is posing serious threat to the economy across the globe, but its effect on developing nations is relatively more damaging.
This trend is likely to continue as hardly any imminent relief seems possible in the near future. Rather, analysts predict that crude oil price for the first time may touch $100 mark in next few days.
The Oil and Gas Regulatory Authority (OGRA) is authorised to review the petroleum prices on fortnightly basis and recommend the government downward or upward revision. It did the work on its part the other day and submitted the report strongly suggesting for passing on the difference in petroleum products prices for the current fortnight to the consumers to avoid burden of another Rs 5 billion on the national exchequer. The Petroleum ministry and Finance Division upheld OGRA's arguments and referred its recommendations to the Prime Minister Secretariat for a final decision.
Pakistan had capped petroleum prices some 6 months back when crude oil prices were ranging between $60 and 65 a barrel. The government opted for not passing on actual price to the consumers only for political mileage. It did so, but it cost billions to the national exchequer as subsidy. Nobody in the government ranks could guess at the time of capping that the crude oil prices will continue to surge and in few months reach to such a high level.
Copyright Business Recorder, 2007