ISLAMABAD, Oct 22: When the Supreme Court of Pakistan resumes hearing of the case of oil and gas pricing on Oct 24, the government is expected to revert to fortnightly fixation of oil prices later this month from weekly adjustments as part of partial implementation of a unanimous resolution of the National Assembly.
A formal decision to this effect is expected to be taken by the Economic Coordination Committee of the cabinet which meets on Tuesday.
A government official told Dawn that the petroleum ministry had forwarded a summary to the ECC on the basis of the resolution of the National Assembly seeking monthly adjustment of oil prices and reduction in the rate of petroleum levy on various products to protect consumers from price hike.
The summary has also attached two resolutions of the standing committee of the National Assembly seeking monthly price revision and bringing down prices of petroleum products to the July 31 position.
The official said the ministry of petroleum would insist on continuation of weekly oil pricing despite resolutions of the National Assembly and its standing committee because it provided better cash flow to oil companies and spread the burden of increase in oil prices in the international market on consumers.
When asked why the ministry of petroleum was taking up the issue to the ECC when it wanted continuation of weekly pricing, the official said that in view of the parliamentary resolutions it had become incumbent upon the petroleum ministry to seek guidance from the ECC. Also, he said the three-month experimental weekly pricing allowed by the ECC was also complete and hence it was necessary to report back to the ECC on completion of the three months time.
Officials said the petroleum ministry had also prepared its report on the similar lines for submission to the Supreme Court when its resumes hearing on Oct 24.
They said that the Supreme Court would be informed that weekly pricing was beneficial for consumers because of distribution of burden over four weeks’ time rather than a substantial increase in one go.