ISLAMABAD, Dec 6: The prices of petroleum products are likely to remain at the current level for at least the current month to generate around Rs1.5 billion payable as subsidy to the oil marketing companies against their price differential claims, it is learnt.
An amount of Rs48 billion was payable by the government to the companies against their claims for May 2004 to October 2006. Of the amount, Rs28 billion was paid by October.
The freezing of oil prices since October despite major scale down in the rates in the international market helped the government raise more than Rs18 billion, leaving a shortfall of Rs1.5 billion.
The Prime Minister’s Advisor on Finance Dr Ashfaq Hassan Khan, when contacted, said the Economic Coordination Committee of the cabinet had not taken up the issue of revision of petroleum prices in its meeting on Wednesday. He said the government would review the prices on around 15th of this month.He said a decision would be taken keeping in view the recouping of the amount payable to the oil marketing companies, as well as the international price.
He said the oil prices had jumped from $57 per barrel to $63 in the international market, which might escalate following the likely decision of the Organisation of Petroleum Exporting Countries to reduce the supply of oil to the international market by one million barrels.
Mr Khan said that the winter in North America was also likely to change the global oil prices scenario.
It was too early to suggest anything about the price situation in the domestic market, he added.
Briefing media persons following the ECC meeting, the advisor said no proposal was under consideration to reduce oil prices by 10-12 per cent in the upcoming fortnightly review.
He said prices of petrol and diesel in Pakistan were lower by 14 and 27 per cent, respectively, in Pakistan as compared to India.
Answering a question, he said the government would review the prices of oil on fortnightly basis.
He said that if the government did not generate the amount payable to the oil companies, it would have to borrow money, which would increase the budget deficit.
