ISLAMABAD, Oct 21: Oil prices will remain unchanged during the next fortnight due to the declining trends in the international market, but the issue will be thoroughly reviewed by the government on October 31.

Informed sources told Dawn on Friday that international oil prices were gradually stabilizing (now $61.5 a barrel in New York and roughly $54 in Middle East) that were forcing the authorities “not” to allow further increase in the petroleum prices.

However, the government has been proposed by some important quarters to allow the Oil and Gas Regulatory Authority (OGRA) to determine the oil prices fortnightly or otherwise to avoid being blamed for supporting the oil marketing companies at the cost of the public.

The sources said that a private body which was a direct beneficiary of increase in oil prices should not be allowed to fix petroleum prices. “If OGRA cannot be given this responsibility then the ministry of petroleum should be asked to determine oil prices so that the interest of the consumers could also be protected”, a source said.

He said that the government was also facing criticism that the Oil Marketing Advisory Committee (OCAC) did not revise upward oil prices under the agreed formula.

The sources also said that pressure was also mounting on the government to pass on the benefit of reduction in oil prices to the people as and when that happened in the international market.

When a senior government official was contacted he confirmed that the government would review oil prices on October 31 and that so far no decision had been taken to allow increase in the oil prices.

Responding to a question, he said in case of an increase in international oil prices, the government had no option but to pass on this burden to the people as well. But he agreed that keeping in view stabilization in world oil prices, the government should not allow further increase in the domestic prices.

However, the official said the government had borne a revenue loss of Rs1.7 billion previously by not increasing the prices.

During first three months of the current fiscal year, the government’s total revenue loss amounted to Rs10.5 billion. This included a Rs3.8 billion in less collection of petroleum development levy and another Rs6.7 billion which the government paid from its own pocket as price differential to the refineries and oil marketing companies, he said.

The official said the government lost a total of Rs68.5 billion since May last year, including Rs22 billion direct fiscal loss as price differential payments to the oil companies and Rs46 billion in petroleum development levy.

He said the prices of motor spirit (petrol) had increased by 60 per cent in the international market since last year but the government increased its prices by 42 per cent. Similarly, the prices of kerosene oil had increased by 83 per cent in the international market over the last one year but it’s the domestic prices went up by 29 per cent.

He said the government still had to pay some outstanding amounts to the oil marketing companies and refineries for keeping domestic prices lower.

He said the government had so far absorbed major shock of petroleum prices and passed on a small portion to the consumers.

Pakistan had set budgetary targets when international oil prices were around $56-57 per barrel which had previously risen to $70 per barrel and were now declining once again.

“But nobody can predict any thing and if tomorrow some thing happens serious in Iraq or elsewhere, these declining international prices could once again shoot up”, the official said.