19 February 2004	Thursday	27 Zilhaj 1424

ISLAMABAD, Feb 18: The government on Wednesday promised to undertake a study of the oil pricing system by a Senate standing committee after several members of the upper house criticised the current fortnightly review that they said hit the common man by frequent increases of rates.

Petroleum and Natural Resources Minister Chaudhry Noraiz Shakoor Khan assured the Senate members that their views would be accommodated for any review of the present policy as he wound up a debate on an adjournment motion moved by Prof Khurshid Ahmed of the Muttahida Majlis-i-Amal who questioned increases in the prices of petroleum products by an advisory committee of distribution companies.

"This is a national issue," the minister said and promised to refer the matter to the concerned Senate standing committee when that was formed. Senate's deputy chairman Khalilur Rehman, who presided over the session at the time, said he hoped the long-delayed standing committees of the house would be formed within one week.

"I invite your suggestions (to study of the matter)," the Petroleum Minister said, though he called the present system of fortnightly price review on the basis of average of the previous 15 days' prices in the international market as being "the most accepted formula in the world".

Earlier, Senate chairman Mohammedmian Soomro set Friday for the start of a debate on the speech President Pervez Musharraf made to a joint sitting of parliament on Jan 17 in the face of noisy opposition protests.

He also reserved his ruling on a point of order from PPP' parliamentary leader Raza Rabbani questioning the prorogation of the previous session of the Senate by President Musharraf while being abroad when the upper house chairman was acting president.

Prof Khurshid, speaking on his adjournment motion, said the system of fortnightly price reviews of petroleum prices had not worked successfully and its overall trend was not in keeping with global prices.

He and several other senators criticised what he called an exploitative role of multi-national companies and the absence of consumers' representation in the price-determining advisory committee.

Some members suggested that the government revert to the previous system of oil price reviews in the annual national budget and some also called for a review of the system by a special committee with a national consensus.

The petroleum minister said the present system had worked quite well until the burden of prices increased after the Iraq war because Pakistan's imports to meet 85 per cent of its requirements - the remaining 15 per cent being met from domestic production - came from the Gulf market.

From 2001 till now, prices of petroleum products in Pakistan had increased 34 times, decreased 21 times and remained unchanged nine times, he said. The minister appeared unimpressed by demands by some Senators from Balochistan that Pakistan import its oil requirements from Iran, from where oil is often smuggled to Balochistan and sold at much lower rates.

He said a $3 billion subsidy was responsible for low oil prices in Iran while local rates in Pakistan were more than those in India and almost at same level as in other neighbouring countries.

The Senate chairman announced that the debate on the president's Jan 17 speech would begin on Friday - when the house meets again at 10am - and conclude on Feb 29, before an adjournment for Muharram.

At the start of Wednesday's sitting - late by about an hour - Mr Rabbani raised his objection to President Musharraf's prorogation order of Jan 23 and said the house was not legally prorogued then and its present 10th session was legally the continuation of the previous session.