KARACHI, July 28: Finance Minister Syed Naveed Qamar said on Monday the government would scrap the customs duty on imports of petroleum products to reduce prices of petrol and diesel.

Talking to media after presiding over a meeting of representatives of oil marketing companies at the NBP head office, he said that sales tax on petroleum products would also be phased out and it would be replaced by an equal amount of subsidy.

He said a meeting of the Economic Coordination Committee would take a decision in this regard in two days.

Answering a question, the minister said that gas prices would no more be deregulated.

“We gave a time limit to Oil and Gas Regulatory Authority (Ogra) to fix CNG prices. This time limit has expired and CNG prices will now be fixed in the current week,” he said.

He said that CNG dealers would be required to charge only the price of gas set by Ogra.

“I am surprised why CNG and petroleum dealers are being allowed to charge a price of their own choice,” he said.

In reply to a question about margins of OMCs and petroleum dealers, he said these would be brought down to a reasonable level.

“I have informed them about the economic situation in the country and made it clear that we cannot benefit one sector to hit other sectors of the economy. We wish to ensure that the wheel of the entire industry remains moving,” he said.

The minister said the government could have taken a unilateral decision but it believed in consultations.

He said that margins could be reviewed after the country’s economic situation was improved.

He said a decision to this effect would also be taken in the ECC meeting.

He said that it would be incorrect to say that the government had completely removed subsidy on petroleum products. “We are still paying a subsidy of Rs35 a litre on diesel.”

In reply to a question about the National Finance Commission, he said a summary was ready and it would soon be submitted to the president, adding that nominations from the four provinces had been received.

The minister categorically rejected a rumour that NBP’s Rozgar scheme would be wound up.

“Our government wants to promote employment in the country. We will not discontinue the Rozgar scheme,” he said.—APP