KARACHI, June 30: As the government announced an increase in oil prices on July 28 and enforced it from June 29, and not from July 1 as per past practice, consumers suffered for three days as they were made to pay higher prices during this period by petroleum dealers.
Between the night of June 28 and July 1, ahead of an original date of POL price-hike, they were told to pay higher rates, and the ultimate gainers turned out to be the dealers who made huge gains as they started charging higher rates after smelling a possible price-hike.
There were also complaints from dealers throughout the country that many pumps remained dry owing to a 50 per cent reduced supplies by the oil marketing companies.
However, many dealers made profits as they obtained oil products from OMCs, but stored them in their underground tanks and sold them between June 15 and 28 after telling consumers that they were getting reduced supply from OMCs.
The Oil and Gas Regulatory Authority (Ogra) issued a notification on June 28 announcing an upward revision in prices, much before the actual date of announcement (June 30).
As per notification, the new prices were to be effective on June 29 while in a majority of previous price revisions (both upward and downward), prices were changed either on the first of a month or on 16th.
“Nobody knows why the government showed such an urgency in announcing POL prices as it announced prices on June 28, rather than on June 30. The government has also not yet explained if they have made a change in the price announcement schedule.
As dealers continued to charge higher rates, many consumers were seen engaged in verbal skirmishes with petroleum dealers over an increase in POL rates from July 1 or June 28. An analyst at a brokerage house was of the view that the government had tried to mislead dealers by announcing rates much earlier as previously they had created an artificial shortage ahead of the actual date of announcement last month.
Speaking about the oil price-hike ahead of June 30, Pakistan Petroleum Dealers Association Chairman Abdul Sami Khan said there was no restriction or a certain law on announcement of prices before or after the due date as it had happened many times.
Ruling out the possibility of dealers making huge profits between June 28 and 29 in view of pile-up inventories, he said that many dealers could not even get POL products on Friday and Saturday from oil marketing companies as per their requirement.
Earlier, he said there were reports that Ogra would announce new rates as per global prices and there would be no fortnightly price revisions.
Speaking about the prices of petroleum products after July 1 after a fresh one per cent increase in the GST, he said that such an increase would further make an impact of one per cent.
“I cannot tell you the exact rate of petrol and diesel after this increase as the association will decide new rates on July 1 at its meeting in the morning,” he said.
Sami, who is also chairman of CNG Dealers Association, pointed out that the government had not yet issued a notification about the imposition of five per cent GDL on CNG. However, CNG prices would definitely cross Rs50 per kg from Rs38.25 per kg after a 31 per cent increase in gas prices by the producers. The association would meet on Tuesday to decide the new CNG prices.
The KWGA chairman said that the increase in petrol and diesel rates would further push up prices of essential commodities by Re1 to Rs1.50 per kg as witnessed during an earlier increase in oil prices.
