Finance ministry has final say in petroleum prices fixation: NA informed
ISLAMABAD: Parliamentary Secretary for Ministry for Petroleum and Natural Resources Shehnaz Shaikh on Wednesday said that the Ministry had nothing to do with the fluctuation of prices of petroleum products and the same was done by Finance Ministry as proposed by the OGRA.
Responding to various questions during the question hour, the parliamentary secretary stated that the prices are adjusted upward/downwards as per Gop/ECC approved formula based on International Arab Gulf Market prices of Petroleum Products as published in Platts Oil gram/imported by PSO.
She said that the OGRA forwards proposal to fix petroleum prices to the Ministry which forwards the proposal to Finance Ministry which gives approval. She said prime minister, federal cabinet and ECC also play role in price fixation. “The Oil and Gas Regulatory Authority (OGRA) and OMCs/Refineries are allowed to increase/decrease the Petroleum Product prices, as specified in pricing formula, approved by ECC”.
She added that the OGRA submits the prices of Petroleum Products as per approved GoP formula and the Ministry of Petroleum & Natural Resources does not modify the prices submitted by OGRA.
“However, in order to provide relief to the consumer, Ministry of Petroleum & Natural Resources holds consultations with Finance Division for any possible changes in Petroleum Levy”.
She said that the present mechanism for price fixation was fairly simple.
Pak-Iran Joint Working Group: Shehnaz Shaikh said that it was a fact that a joint working group has been established for Pak/Iran Gas Pipeline Project and the composition of the Group included Ministry of Petroleum and Natural Resources, Ministry of Finance, Ministry of Law, Justice and Human Rights, Ministry of Foreign Affairs, State Bank of Pakistan, Inter State Gas Systems Limited.
She stated that the group in its meeting held during 17th – 18th July, 2012, Islamabad, discussed financial and technical aspects of the project.
“The Iranian party expressed its readiness to cooperate in the construction of the pipeline in Pakistan including planning and engineering, supplying the pipeline, construction of compressor stations, implementation of pipeline as well as financing for some part of it”.