ISLAMABAD, Sept 4: Senators on Tuesday crossed party lines to slam increase in prices of petroleum products and compressed natural gas (CNG).

Speaking on a motion to discuss decision made by the Economic Coordination Committee (ECC) to review petroleum prices on a weekly basis, they observed that the recent price hike would adversely affect the industrial, agricultural and transport sectors, enhance prices of edible and non-edible items and multiply suffering of the common man. They said the power tariff would go up as fuel adjustment charges would increase.

Senators from opposition PML-N and JUI-F and two coalition partners, MQM and ANP, described the price hike as an injustice and slated the manner in which the economy was being run.

The Oil and Gas Regulatory Authority (Ogra) was dubbed a money-making machine as the Senators accused it of being in collusion with the refineries.

Leader of Opposition in the house Muhammad Ishaq Dar demanded of the government to freeze petroleum development levy (PDL) and come up with a transparent mechanism for price fixing. “For heaven’s sake decide once for all what system is to be followed.”

Nuzhat Sadiq threw light on the procedure to increase oil prices requiring public hearings, and said the Ogra Act was being violated. She said the government was earning Rs38-40 per litre on petrol and claimed that it earned Rs250 billion from taxes last year.

Col (retd) Tahir Hussain Mashhadi of the MQM termed the increase ‘financial murder of the common man’ and demanded its immediate withdrawal. “We seek justice for poor people.”

Zahid Khan of the ANP said it must be seen if it was a conspiracy against the government. “People will question the rationale behind it when we will go for canvassing before the polls,” he warned.

Ilyas Bilour of the same party proposed that Ogra’s powers to change the prices be clipped.

Rafiq Rajwana of the PML-N said some politicians talked about supremacy of parliament when they discussed the judiciary but no concrete step was allowed to be taken by the parliament to provide relief to people. He asked the MQM to part ways with the government and join public protest.

Hafiz Hamdullah of the JUI-F said a democratic government should protect the people’s interests instead of adding to their woes.

Syed Zafar Ali Shah of the PML-N criticised the price increase in his own way. He proposed provision of petrol to people at the rate of Rs1 per litre for 24 hours, to enable people to commit suicide.

Adviser on Petroleum and Natural Resources Dr Asim Hussain pointed out that Ogra controlled the petroleum prices and ministry had nothing to do with it, while finance division was responsible for taxation. He claimed that a transparent system was in place for fixing oil prices.

At this, Senate Chairman Nayyar Hussain Bokhari intervened and observed that Ogra was answerable to both the houses of parliament. “If it does not fall under the purview of your ministry, the controlling authority should have been here for reply,” he remarked.

Dr Asim Hussain said Rs323 billion was collected last year from the General Sales Tax on petroleum products, with Rs198 billion going to the provinces. The PDL, he said, brought another Rs69 billion to the national exchequer.

He said the margin of oil marketing companies (OMCs) in Pakistan was lowest at only two per cent as against six to eight per cent prevailing internationally. Some OMCs wanted an increase in the margin or leave the country.

Haji Adeel of the ANP announced a walk-out by his party over the failure of adviser to tell how prices would be brought down.

Ishaq Dar, whose party had already staged a walk-out over hike in petroleum prices told Dr Asim Hussain not to repeat things already known rather provide a solution.

Dr Asim Hussain said the GST and the PDL were only variable components of the procedure under which prices were determined.

The house will now meet on Wednesday at 5pm.