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			<title>Govt keeps petrol, diesel prices unchanged</title>
			<link>https://tribune.com.pk/story/2421896/govt-keeps-petrol-diesel-prices-unchanged-1</link>
			<comments>https://tribune.com.pk/story/2421896/govt-keeps-petrol-diesel-prices-unchanged-1#comments</comments>
			<pubDate>Thu, 15 Jun 23 16:52:29 +0500</pubDate>
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				<![CDATA[Finance Minister Ishaq Dar says current prices would remain in effect until June 30]]>
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				<![CDATA[The federal government on Thursday announced that the prices of petroleum products would remain unchanged for the next 15 days.

Addressing a press conference in Islamabad, Finance Minister Ishaq Dar said that the current prices would remain in effect until June 30.

The minister stated that during the last two rounds, the prices of petroleum products were significantly reduced, saying that the tariffs of high-speed diesel were reduced by Rs35 whereas petrol saw a reduction of Rs20.

Read more: Petrol price likely to fall by Rs1.87 per litre

He said that the prices of petroleum products slightly increased in the international market from June 1 to June 15, therefore, the government decided to keep the prices unchanged.

Petrol is used in motorbikes and small cars and it is also an alternate to compressed natural gas (CNG).

The HSD is widely used in agriculture and transport sectors and the LDO is used in industry. The reduction in the HSD price will have healthy impact on farmers and may lead to cut in the cost of transportation of goods.

The kerosene oil is used in remote areas of Pakistan, especially the northern part of the country where the liquefied petroleum gas (LPG) is not available for cooking purpose. The army is also a key user of kerosene oil in northern part of the country.]]>
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			<title>Petrol price may go up by Rs6.82 per litre</title>
			<link>https://tribune.com.pk/story/437492/petrol-price-may-go-up-by-rs6-82-per-litre</link>
			<comments>https://tribune.com.pk/story/437492/petrol-price-may-go-up-by-rs6-82-per-litre#comments</comments>
			<pubDate>Sun, 16 Sep 12 05:11:13 +0500</pubDate>
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				<![CDATA[HSD down by Rs1.75 per litre; CNG prices may rise by Rs6.23 per kg.]]>
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				<![CDATA[Consumers are likely to face a hike in petrol prices by Rs6.82 per litre in line with the fluctuation in global oil prices. However, the price of High Speed Diesel (HSD) may witness a decline of Rs1.75 per litre.


On Saturday, the petroleum ministry submitted a summary to the finance ministry to notify the new prices from Monday.

Following the hike in petrol prices, the price of Compressed Natural Gas (CNG) may also jump up to Rs6.23 per kilogram due to its link with 60% parity of petrol price.

The government had raised prices of HSD by Rs3.39 per litre whereas the price of petrol was slashed by Rs4.65 per litre last Sunday in line with the current fluctuation in global oil prices.

However, consumers will face relief in the prices of HSD by Rs1.75 per litre next week due to a decline in global oil prices.

HSD is used by the masses in transport and agriculture sectors. Therefore, a decline in its price may directly impact the lives of many by bringing down inflation and bringing relief to the farming community as well.

Kerosene oil is used in remote areas for cooking where Liquefied Petroleum Gas (LPG) is not available, especially in the northern areas of the country. The government had raised its price by Rs1.85 per litre last Sunday. Another hike of Rs 0.62 per litre is on the cards, which is due to take effect from next week due to fluctuation in global oil prices.

High Octane Blending Component (HOBC) is used in luxury vehicles and its price is expected to go up by Rs1.50 per litre from next week. The government had raised the price of HOBC by Rs3.27 per litre on last Sunday. This product is not used on a large scale basis and is only produced by Pak Arab Refinery Limited (Parco).

Light Diesel Oil (LDO) which is used for industrial purposes may witness a decline in price of Rs0.14 per litre. Its price had jumped up by Rs0.57 per litre last Sunday.

After the proposed hike, the prices of petrol may go up from Rs99.90 to Rs106.72 per litre, HOBC from Rs136.46 to Rs137.96 per litre and kerosene oil from Rs 104.06 to Rs 104.68 per litre. However, the price of HSD may go down to Rs113.77 from Rs115.52 per litre and Light Diesel Oil (LDO) from Rs99.41 to Rs99.27 per litre.

The government is currently implementing a mechanism of weekly basis price review. Thus consumers are due to face a third revision in oil prices during the month of September.

All Pakistan CNG Association (APCNGA) and the government have reached an agreement regarding CNG prices. According to the agreement, the prices of CNG are linked with a 60% parity of petrol price. Therefore, the increase in price of petrol may lead to hike in its price Rs6.23 per kilogram in region-1 and Rs5.69 per kg in region-2.

The CNG price may be hiked to Rs97.68 from Rs91.45 kg in region-1, including the areas of Khyber-Pakhtunkhwa (K-P), Balochistan &amp; Potohar Region (Rawalpindi, Islamabad &amp; Gujarkhan) and Rs89.24 from Rs83.55 per kg in region-2 including the areas of Sindh and Punjab (Excluding Potohar Region).

Published in The Express Tribune, September 16th, 2012.]]>
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			<title>Weekly review: Petrol price may go up by Rs7.77 per litre</title>
			<link>https://tribune.com.pk/story/428956/weekly-review-petrol-price-may-go-up-by-rs7-77-per-litre</link>
			<comments>https://tribune.com.pk/story/428956/weekly-review-petrol-price-may-go-up-by-rs7-77-per-litre#comments</comments>
			<pubDate>Thu, 30 Aug 12 23:30:14 +0500</pubDate>
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				<![CDATA[CNG prices are likely to remain unaffected by hike.]]>
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				<![CDATA[Consumers are likely to face a Rs7.77 per litre hike in petrol prices from September 1, in line with the increase in global oil prices.


According to sources in the Pakistan State Oil (PSO), the price of petrol will touch the Rs101.34 per litre mark if the finance ministry refuses to absorb the price hike next month.

The new deregulated oil pricing mechanism, effective since August 23, allows PSO to set prices for all petroleum products, save kerosene and E-10, while the petroleum ministry notifies the petroleum levy (PL) for the products.

The Oil and Gas Regulation Authority (Ogra) recommended that the government absorb the hike in oil prices through the PL in order to relieve consumers. Sources in the finance ministry, however, say the authority has been asked to refrain from recommending any such action.

“Ogra has been asked to monitor prices and submit a quarterly report with an oil pricing analysis to the Economic Coordination Committee (ECC) of the cabinet,” the finance ministry sources said.

According to PSO’s calculations, the price of petrol will increase by Rs7.77 per litre, High Octane Blending Component (HOBC) by Rs8.18 per litre, kerosene by Rs5.84 per litre, High Speed Diesel (HSD) by Rs5.94 per litre and Light Diesel Oil (LDO) by Rs5.54 per litre.

After the proposed hike, petrol will cost Rs104.55 per litre from Rs96.78, HOBC Rs133.19 from Rs125.01, HSD Rs112.13 from Rs106.19, LDO Rs98.84 from Rs93.30 and kerosene Rs102.19 from Rs96.35 per litre.

While compressed natural gas (CNG) prices are supposed to maintain 60 per cent parity with petrol prices, a petroleum ministry official said the government will not be able to increase the price of CNG following the hike in petrol price.

“The government is already charging the maximum rate set by the Gas Infrastructure Development Cess (GIDC) and therefore has no space to increase prices further,” the official told The Express Tribune.

Currently, the government charges Rs300 per million British thermal unit (mmbtu) for CNG consumers in region-1 and Rs200 mmbtu for region-2. These are the maximum rates approved by the parliament. The only way the government can hike CNG prices is by increasing gas costs.

“However, the government cannot raise gas prices since it is Ogra’s responsibility to determine the hike in rate following petitions from gas utilities Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited,” sources told The Express Tribune. They added that the National Accountability Bureau is already investigating the gas pricing formula implemented by the government.

Some industrialists have already obtained stay orders from different courts against GIDC implementation as well.

Published in The Express Tribune, August 31st, 2012.]]>
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			<title>Oil prices rise by up to Rs4.40</title>
			<link>https://tribune.com.pk/story/425063/oil-prices-rise-by-up-to-rs4-40</link>
			<comments>https://tribune.com.pk/story/425063/oil-prices-rise-by-up-to-rs4-40#comments</comments>
			<pubDate>Wed, 22 Aug 12 22:21:43 +0500</pubDate>
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			<description>
				<![CDATA[Prices to now be reviewed on weekly basis.]]>
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				<![CDATA[Following Eid festivities, the government gave citizens some more to digest: a rise in oil prices by up to Rs4.40 per litre, effective from Thursday (today).


The government had kept oil prices unchanged by absorbing the hike in the petroleum levy on August 16, following the directives of President Zardari till August 31, 2012. However, the state-owned Pakistan State Oil (PSO) notified an increase in prices of petroleum products in the deregulated oil pricing mechanism, following the directives of the petroleum ministry on Wednesday.

The price of petrol has been raised by Rs3.21 per litre, HOBC by Rs4.85 per litre, kerosene oil by Rs3.52 per litre, HSD by Rs4.40 per litre, LDO by Rs3.19 per litre, JP-1 by Rs3.48 per litre, JP-4 by Rs3.47 per litre, JP-8 by Rs3.48 per litre and E-10 by Rs3.21 per litre.

Following the move, the price of petrol has gone up to Rs96.78 from Rs93.57 per litre, HOBC to Rs125.01 from Rs120.16 per litre, HSD to Rs106.19 from Rs101.79 per litre, LDO to Rs93.30 from Rs90.11 per litre, kerosene oil to Rs96.35 from Rs92.83 per litre, E.10 to Rs94.28 from Rs91.07 per litre, JP-1 to Rs85.84 from Rs82.36 per litre, JP-4 to Rs77.51 from Rs74.04 per litre and JP-8 to Rs85.53 from Rs82.05 per litre.

The move comes just a week after the announcement to keep the price unchanged to earn extra revenue on account of the rise in petroleum levy. According to a press release issued on August 15, the Oil and Gas Regulatory Authority (Ogra) had notified to keep the oil prices unchanged till the end of August, following a fortnightly basis of the review in prices mechanism.

Now the weekly review of the oil prices mechanism has been implemented in line with the petroleum ministry’s directives, sources said, adding that the Economic Coordination Committee (ECC) had decided to implement the oil pricing mechanism on a weekly basis from September 1, 2012. Ogra had strongly opposed the review of oil prices on a weekly basis, fearing that hoarders would mint money by stockpiling oil and create an artificial shortage in the market. But the petroleum ministry wanted to implement the weekly pricing mechanism to back refineries.

A senior official of the ministry said that the finance ministry had pressed them to hike oil prices to avoid revenue losses on account of the increase in petroleum levy. “The finance ministry had estimated that it would lose revenue of Rs2 billion in two weeks from August 16 to 31,” an official said, adding that the government would now pocket Rs1 billion in the space of a week due to the rise in prices.

The All Pakistan CNG Association (APCNGA) and the government have an agreement regarding Compressed Natural Gas (CNG) prices. According to the agreement, the prices of CNG are linked with 60% parity of the petrol price. Hence, the increase in petrol prices has caused a hike in prices of CNG in both region-1 and region-2. Prices have been raised to Rs88.61 from Rs85.67 per kg in region-1 and Rs80.94 from Rs78.26 per kg in region-2.

Published in The Express Tribune, August 23rd, 2012.]]>
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			<title>Upward revision: Oil price hike on the cards</title>
			<link>https://tribune.com.pk/story/421560/oil-price-hike-of-rs4-likely-after-ramazan</link>
			<comments>https://tribune.com.pk/story/421560/oil-price-hike-of-rs4-likely-after-ramazan#comments</comments>
			<pubDate>Mon, 13 Aug 12 14:34:32 +0500</pubDate>
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				<![CDATA[Govt may increase oil prices by up to Rs4.40 per litre.]]>
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				<![CDATA[The government may increase oil prices by up to Rs4.40 per litre – effective from August 16 – to pass on the impact of global oil prices to consumers.

In spite of the recommendation made by the Oil and Gas Regulatory Authority (Ogra) to the petroleum ministry, President Asif Ali Zardari has issued directives to halt an increase in the rates of petroleum products.

According to the summary moved by Ogra on Monday, the regulator recommended Rs3.21 per litre increase in the price of petrol, Rs4.85 per litre in the price of High Octane Blending Component (HOBC), Rs3.52 per litre in the price of kerosene oil, Rs4.40 per litre in the price of High Speed Diesel (HSD) and Rs3.19 per litre in the price of Light Diesel Oil (LDO). The summary also recommended a price hike in jet fuel – JP-1 by Rs3.48 per litre, JP-4 by Rs3.47 per litre and JP-8 by Rs3.58 per litre.

With the proposed increase, the price of petrol will jump from Rs93.57 to Rs96.78 per litre, HOBC from Rs120.16 to Rs125.01 per litre, kerosene oil from Rs92.83 to Rs96.35 per litre, HSD from Rs101.79 to Rs106.19 per litre, LDO from Rs90.11 to Rs93.30 per litre. The new price of JP-1 will go up from Rs82.36 to Rs 85.84 per litre, JP-4 from Rs74.04 to Rs77.51 per litre and JP-8 from Rs82.05 to Rs85.53 per litre.

The new prices will be effective from August 16 after approval of Prime Minister Raja Pervaiz Ashraf.

Earlier, the Oil and Gas Regulatory Authority (Ogra) had proposed that the federal government cut the rate of the petroleum levy to provide relief to consumers from the rising trend in oil prices during Ramazan.

However, a senior official at the petroleum ministry said that the finance ministry shot down the proposal, as petroleum levy was an easy source of collecting tax from the consumers to bridge its budget deficit.

Advisor to the Prime Minister on Petroleum Dr Asim Hussain said that the prices of petroleum products would remain unchanged irrespective of the increase recommended by OGRA.

Talking to Pakistan Television (PTV), he said that President Zardari had advised that the POL prices should be kept stable on the account of Eidul Fitr.

Replying to a question, he said that the changes in POL prices are linked with international markets, and Ogra is responsible for recommending the changes in the prices.

(with additional input from APP)]]>
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			<title>Petroleum prices: Khyber-Pakhtunkhwa transporters observe wheel-jam strike</title>
			<link>https://tribune.com.pk/story/362578/petroleum-prices-khyber-pakhtunkhwa-transporters-observe-wheel-jam-strike</link>
			<comments>https://tribune.com.pk/story/362578/petroleum-prices-khyber-pakhtunkhwa-transporters-observe-wheel-jam-strike#comments</comments>
			<pubDate>Tue, 10 Apr 12 15:57:03 +0500</pubDate>
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			<category><![CDATA[K-P]]></category>
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				<![CDATA[Transporters vow to continue protest till prices of petroleum and lubricants are lowered.]]>
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				<![CDATA[Transporters in Khyber-Pakhtunkhwa observed a wheel-jam strike on Tuesday against the recent fuel price hike. However, in provincial capital Peshawar, the strike was only partial.

In Peshawar, the strike call was observed given by the All Pakistan Goods Transport Truck Owners Association and All Pakistan Oil Tankers Owners Association. They vowed to continue their protest until the prices of petroleum and lubricants are lowered.

Transporters whose cars consume CNG also did not participate as they are divided on the issue of fares.

Sarhad Transport Association President Haji Ihsan told The Express Tribune that the vehicles consume either CNG or diesel. He said that fares are already high for those vehicles that consume diesel, and thus there is no need for those transporters to protest.

He said that some contractors at the old General Bus Stand, where most of vehicles use CNG, want to increase their fares to that charged by vehicles using diesel. “This will be injustice to the poor public who cannot afford such high fares,” he said.

Ihsan said that transporters at the Peshawar Bus Terminal are against the strike but protesters from the old bus stand had blocked the GT Road and are obstructing his association’s transporters in reaching their destinations. “If the owners of CNG-run transport want to increase their fares, they should approach the court instead of going for strikes and blocking roads.”

Across Charsadda district, transporters observed the strike, local sources told The Express Tribune.

In Nowshera district, most drivers blocked roads and there were instances in which they pulled passengers out of public transport vehicles.

A resident from DI Khan said students and clerical staff faced problems reaching colleges and workplaces due to the strike.

Reports from Mardan and Swabi districts also said public transport remained unavailable and only private transport could be seen on roads.]]>
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			<title>Balochistan traders protest against petrol price hike</title>
			<link>https://tribune.com.pk/story/359638/balochistan-traders-protest-against-petrol-price-hike</link>
			<comments>https://tribune.com.pk/story/359638/balochistan-traders-protest-against-petrol-price-hike#comments</comments>
			<pubDate>Wed, 04 Apr 12 16:17:26 +0500</pubDate>
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			<category><![CDATA[Balochistan]]></category>
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				<![CDATA[BTA leaders complained about the increase in POL prices, target killings and kidnappings.]]>
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				<![CDATA[The Balochistan Traders Association (BTA) staged a protest in Quetta on Wednesday, condemning the hike in petroleum prices, complaining that it would add to the woes of the poor. 

Scores of BTA workers led by the association’s President, Abdul Rahim Kakar staged a noisy demonstration at Mezan Chowk and raised slogans against the government for its failure to provide relief to the common people.

The protesters complained that the increase in fuel prices would affect the prices of other essential commodities, causing inflation in the country.

BTA leaders, including Abdul Rahim Kakar and Allah Dad, addressed the demonstrators, rejecting the recent increase in petroleum prices by calling it unjust and that it would add to the misery of the poor.

“The petroleum products have been increased by 50 per cent during the past four years.The increase in POL prices will push the transportation cost of goods up to the disadvantage of the traders and common people.”

They also criticised the government for the deteriorating law and order situation in the province, saying incidents of kidnapping for ransom had become a routine matter in the province, particularly in Quetta.

Speaking on target killing, the leaders said that incidents of target killing were fanning differences amongst the different communities of Quetta, urging for a strong action against culprits.]]>
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			<title>Notices issued: OGRA’s authority to regulate CNG prices challenged</title>
			<link>https://tribune.com.pk/story/359373/notices-issued-ogra%e2%80%99s-authority-to-regulate-cng-prices-challenged</link>
			<comments>https://tribune.com.pk/story/359373/notices-issued-ogra%e2%80%99s-authority-to-regulate-cng-prices-challenged#comments</comments>
			<pubDate>Tue, 03 Apr 12 22:48:53 +0500</pubDate>
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			<category><![CDATA[Sindh]]></category>
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				<![CDATA[The law that empowered Ogra to fix prices has lapsed, argues petitioner.]]>
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				<![CDATA[A division bench of the Sindh High Court ordered on Tuesday notices to be issued to the federal secretaries of the ministries of petroleum on a petition which questions the authority of the Oil and Gas Regulatory Authority (Ogra) to regulate the prices of CNG.

Justice Maqbool Baqar and Justice Shafi Siddiqui were hearing a constitutional petition filed by an NGO, United Human Rights Commission Pakistan, challenging the existence of Ogra and its power to increase or decrease CNG prices.

Earlier, the honorary secretary of the NGO appearing in person submitted that in February 2009, an amendment was brought into Ogra Ordinance 2002 where in a section -- 43(b) -- was inserted, empowering Ogra to regulate and fix prices of CNG and other petroleum products.

The ordinance lapsed and was not assented to by parliament, rendering Ogra illegal and without any legal backing or authority, the petitioner argued.

The petitioner questioned the mechanism of determining the prices and also the new licenses to more than 5,500 CNG stations despite a shortage of natural gas in the country.

The issue of faulty policy of the ministry of petroleum was also agitated in the petition. The petitioner maintains that general public is suffering due to irrational policies of the government.

The court was prayed to declare that Ogra has no powers and legal backing and hence was not empowered to take decisions in respect of price of CNG.

The court after initial hearing ordered issuance of pre-admission notices to the respondents while they were also asked to file their written comments in the petition.

Another identical petition challenging the recent raise in POL and gas prices was adjourned indefinitely as petitioner, Moulvi Iqbal Haider, was not in attendance when the case was called in.

Published in The Express Tribune, April 4th, 2012.]]>
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			<title>Fuel price hike: Politicians join protesters in southern Punjab</title>
			<link>https://tribune.com.pk/story/359380/fuel-price-hike-politicians-join-protesters-in-southern-punjab</link>
			<comments>https://tribune.com.pk/story/359380/fuel-price-hike-politicians-join-protesters-in-southern-punjab#comments</comments>
			<pubDate>Tue, 03 Apr 12 20:57:13 +0500</pubDate>
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			<category><![CDATA[Punjab]]></category>
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				<![CDATA[Mainstream parties, clerks’ association demand petrol price revision.]]>
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				<![CDATA[Three rallies were taken out in various southern Punjab cities to condemn the recent increase in petroleum prices.


The Pakistan Muslim League-Nawaz (PML-N) organised a rally in Multan led by Senator Malik Rafiq Rajwana, MNA Sheikh Tariq Rasheed and Punjab Minister for Housing and Auqaf Haji Ehsan-uddin Qureshi.

Protestors shouted slogans against the government and burnt tyres. Addressing the rally, PML-N leaders said the increase in petroleum prices would further spur inflation.

Seperately, Pakistan Tehreek-i-Insaf (PTI) joined other political parties in organising a demonstration in Multan. They asked the government to take back the recent increase in petroleum prices and demanded that non-development expenditures be curbed. Speaking at the rally, PTI leader Makhdoom Javed Hashmi denounced the ‘anti-people’ decision to raise CNG and petroluem prices.

Seperately, the All-Pakistan Clerk Associations took out a rally in Bahawalpur against the increase in prices and unscheduled power outages from Health Office to Fareed Gate.

Leading a rally of around 1,000 staff, APCA Punjab General Seceratery Fakhrur Rehman Azhar criticised the federal and Punjab government for being unable to control the rising prices of essential commodoties and utilities.

Joined by APCA Health Department Chairman Malik Muhammad Khalid and office bearers, the participants rejected the latest hike in price of petroluem products. They called the petroleum levy illegal for being imposed through an ordinance, not an act of parliament.

They said that ending the petroluem levy would reduce petroleum prices by Rs15 and diesel prices by Rs9. PPI

Published in The Express Tribune, April 4th, 2012.]]>
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			<title>Succumbing to pressure: Petroleum price hike expected to be reduced by up to 28%</title>
			<link>https://tribune.com.pk/story/359214/succumbing-to-pressure-petroleum-prices-reduced-by-up-to-25</link>
			<comments>https://tribune.com.pk/story/359214/succumbing-to-pressure-petroleum-prices-reduced-by-up-to-25#comments</comments>
			<pubDate>Tue, 03 Apr 12 16:38:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=359214</guid>
			<description>
				<![CDATA[Finance ministry approves reduction in oil prices, new price of petrol to be Rs103.36 per litre.]]>
			</description>
			<content:encoded>
				<![CDATA[After facing pressure from political parties, traders and the public at large, the Finance Ministry on Tuesday is expected to approve a a 28 per cent reduction in recent hike of oil prices, of up to Rs2.23 per litre.

In response to a summary moved by the Petroleum Ministry, the Finance Ministry approved a cut of Rs2.23 per litre in the price of petrol, Rs1.16 per litre reduction in High Speed Diesel and Rs1.74 per litre in kerosene oil.

After the reduction in price, the new price of petrol will be Rs103.36 per litre, High Speed Diesel Rs107 per litre and kerosene oil Rs99.95 per litre.

The government also slashed the price of CNG by Rs 1.95 per kilogram, bringing it down from Rs 88.70 per kg to Rs 86.75 per kg  in areas of Khyber Pakhtunkhwa, Balochistan and Potohar Region (Rawalpindi, Islamabad and Gujarkhan).

In Sindh and Punjab (excluding Potohar Region), the price was reduced by Rs 1.78 per kg, bringing it down from 80.98 per kg to 79.20 per kg.

The Oil and Gas Regulatory Authority (Ogra) will issue notification later tonight, with the new prices due to come into effect on April 4.

The reduction in the prices of petroleum products came after massive countrywide protests launched by political parties, traders, transporters and the public. Earlier in the day, Karachi transporters called for a strike on April 10 to protest against the price hike.]]>
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			</item><item>
			<title>Petrol price hike: Karachi transporters to strike on April 10</title>
			<link>https://tribune.com.pk/story/359134/petrol-price-hike-karachi-transporters-to-strike-on-april-10</link>
			<comments>https://tribune.com.pk/story/359134/petrol-price-hike-karachi-transporters-to-strike-on-april-10#comments</comments>
			<pubDate>Tue, 03 Apr 12 10:50:06 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=359134</guid>
			<description>
				<![CDATA[Karachi Transport Ittehad calls strike against government's decision to increase petroleum prices.]]>
			</description>
			<content:encoded>
				<![CDATA[The Karachi Transport Ittehad (KTI) has called a strike in the city on April 10 to protest the increase in petroleum prices, Express News reported on Tuesday.

KTI President Irshad Bukhari, talking to the media, said that the transport community is stronger than any political party.

The transporters across the country had given a three-day ultimatum to the government to take back its decision of increasing the petroleum prices and warned of holding countrywide protests if the prices were not brought down.

Succumbing to the pressure, Federal Minister for Petroleum Dr Asif Hussain told the media on Monday that the government was considering a cut of Rs2 to Rs3 per litre in petrol and Rs1 to Rs2 in diesel prices. However, no formal announcement was made.

For the first time in the country’s history, all three fuels – petrol, diesel and kerosene oil – cost over Rs100 per litre. Price of CNG has also been raised by up to Rs11.55 per kg.]]>
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			<title>UHRCP files plea challenging hike in petroleum, CNG prices</title>
			<link>https://tribune.com.pk/story/359117/uhrcp-files-plea-challenging-hike-in-petroleum-cng-prices</link>
			<comments>https://tribune.com.pk/story/359117/uhrcp-files-plea-challenging-hike-in-petroleum-cng-prices#comments</comments>
			<pubDate>Tue, 03 Apr 12 07:25:29 +0500</pubDate>
			<dc:creator>
				<![CDATA[zeeshan.mujahid]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=359117</guid>
			<description>
				<![CDATA[The bench put the Ministry of Petroleum and Ogra on notice for an unspecified date.]]>
			</description>
			<content:encoded>
				<![CDATA[United Human Rights Council Pakistan (UHRCP) has filed a petition challenging the recent increase in the prices of petroleum products and Compressed Natural Gas (CNG).

The petition was heard by Justice Maqbool Baqar and Justice Shafi Siddiqui at the Sindh High Court on Tuesday.

In the petition, the UHRCP has appealed to the court to declare the decision of the federal government, Oil and Gas Regulatory Authority (Ogra) of increasing prices as illegal, being uninformed.

The bench put the Ministry of Petroleum and Ogra on notice for an unspecified date.

The UHRCP’s representative present before the court, Rana Faizul Hasan, while referring to different articles of the Constitution of Pakistan, maintained that unless a money bill is laid before parliament, such a decision could not be taken by the government as such decisions amount to “mini budget”.]]>
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			<title>Massive hike: Govt likely to cut fuel prices by up to Rs3</title>
			<link>https://tribune.com.pk/story/359022/massive-hike-govt-likely-to-cut-fuel-prices-by-up-to-rs3</link>
			<comments>https://tribune.com.pk/story/359022/massive-hike-govt-likely-to-cut-fuel-prices-by-up-to-rs3#comments</comments>
			<pubDate>Tue, 03 Apr 12 01:08:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=359022</guid>
			<description>
				<![CDATA[Petroleum Ministry issues summary to revise petroleum levy. OGRA expected to issue notification.]]>
			</description>
			<content:encoded>
				<![CDATA[After receiving scathing criticism from transporters, traders and the general public, the government, it seems, has succumbed to the pressure and decided to retract the recent massive price hike in fuel prices.


Talking to the media after holding a meeting with President Asif Ali Zardari at Bilawal House in Karachi, Federal Minister for Petroleum Dr Asif Hussain revealed that the government was considering a cut of Rs2 to Rs3 per litre in petrol and Rs1 to Rs2 in diesel prices.

However, he said that a formal announcement would be made by the finance ministry.

“We took this decision in a bid to provide relief to consumers on the directives of President Asif Zardari. The government will bear the loss and a notification of the same will be issued soon,” he said.

Published in The Express Tribune, April 3rd, 2012.]]>
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			</item><item>
			<title>Truly, a petrol ‘bomb’</title>
			<link>https://tribune.com.pk/story/358682/truly-a-petrol-%e2%80%98bomb%e2%80%99</link>
			<comments>https://tribune.com.pk/story/358682/truly-a-petrol-%e2%80%98bomb%e2%80%99#comments</comments>
			<pubDate>Mon, 02 Apr 12 18:17:17 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358682</guid>
			<description>
				<![CDATA[The government’s decision to increase the price of petrol by over eight per cent is sure to lead to outrage, protests.]]>
			</description>
			<content:encoded>
				<![CDATA[The government’s decision to increase the price of petrol by over eight per cent is sure to lead to outrage and street protests, especially since petrol prices have now crossed the psychological barrier of Rs 100. The primary reason for this is the fact that the international prices of oil have been increasing at a stunning rate. Since Pakistan imports more than 80 per cent of its energy, the government has been left with no choice but to institute price hikes on petroleum products. Indeed, even at its current price, the government is subsidising petroleum products. What can be questioned is whether the government needed to increase the price by quite as high a percentage as it did.

It is incumbent on the government to realise that increasing the price of petrol sends ripples throughout the economy. Petrol and diesel are vital to Pakistan’s economy and so an increase in its price will lead to an attendant increase in the prices of other essentials. The transport of food, for instance, will now become more expensive which will obviously lead to an increase in the prices of essential food items. Our economy has suffered enough inflation in the last few years without the government all but guaranteeing further price increases across the board.

Buying oil on the international market has also been steadily becoming more expensive for the government because its actions have contributed to the depreciation of the rupee against the dollar. True, part of the reason for the depreciation is that Pakistan spends such a large amount of its foreign currency reserves on oil. But shortsighted decisions like deciding not to seek an extension of the IMF programme as well as worsening ties with the US have greatly contributed to the depreciation of the currency. Subsidising petrol is vital, but in order to ensure that it can afford to do so the government needs to get its economic priorities straight. It may not be able to do anything about the vagaries of international oil prices but it can seek alternatives to oil and get its own economic house in order.

Published in The Express Tribune, April 3rd, 2012.]]>
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			<title>Increase in gas prices: 2 petitions filed in LHC</title>
			<link>https://tribune.com.pk/story/358752/increase-in-gas-prices-2-petitions-filed-in-lhc</link>
			<comments>https://tribune.com.pk/story/358752/increase-in-gas-prices-2-petitions-filed-in-lhc#comments</comments>
			<pubDate>Mon, 02 Apr 12 17:17:37 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358752</guid>
			<description>
				<![CDATA[Petitioner request that the court issues directions to the government to withdraw the increase.]]>
			</description>
			<content:encoded>
				<![CDATA[Two petitions, challenging the recent increase in petroleum and CNG prices, were moved on Monday before the Lahore High Court. Advocate Muhammad Azhar Siddique, the Judicial Activism Panel chairman, filed both the petitions; one on his own behalf, in which he challenged the increase in petrol prices, and the other on behalf of the CNG Association, which challenged the increase in gas price. Advocate Siddique said that the government claimed that it had to import most of the oil and that financial constraints had forced the authorities to pass the global increase in oil products to the public. He submitted that the increase would push inflation even higher and create a crisis. He requested that the court issues directions to the government to withdraw the increase.]]>
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			</item><item>
			<title>Government expected to reduce petroleum prices by up to Rs3</title>
			<link>https://tribune.com.pk/story/358645/government-likely-to-reduce-new-petroleum-prices</link>
			<comments>https://tribune.com.pk/story/358645/government-likely-to-reduce-new-petroleum-prices#comments</comments>
			<pubDate>Mon, 02 Apr 12 09:46:44 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358645</guid>
			<description>
				<![CDATA[Petroleum Ministry issues summary to revise petroleum levy. OGRA expected to issue notification.]]>
			</description>
			<content:encoded>
				<![CDATA[The government is likely to announce a reduction in new petroleum prices, sources in the petroleum ministry told Express News on Monday.

The Ministry has decided to revise downwards petroleum prices by reducing the petroleum levy. In a summary sent by Petroleum Minister Dr Asim Hussain to the Oil and Gas Regulatory Authority (OGRA), the reduction in the levy would bring petrol prices down by as much as Rs3.

The prices of all three fuels – petrol, diesel and kerosene oil – were raised to over Rs100 per litre on Sunday. The price of CNG was also raised by as much as Rs11.55 per kg.

Transporters, traders and the common man alike were irked by this decision and announced to protest against it. All Pakistan Transport Owners Association (APTOA) also warned that transport fares would be raised if petroleum prices are not brought down.

Traders gave an ultimatum of 72 hours to the government to reverse its decision and warned of holding a countrywide campaign of civil disobedience in case their demand is not met. Muttahida Qaumi Movement (MQM) also demanded that the government reverse the decision calling it a ‘crime against the public’.]]>
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			<title>Fuel price hike: Transporters raise fares, threaten strike</title>
			<link>https://tribune.com.pk/story/358493/fuel-price-hike-transporters-raise-fares-threaten-strike</link>
			<comments>https://tribune.com.pk/story/358493/fuel-price-hike-transporters-raise-fares-threaten-strike#comments</comments>
			<pubDate>Mon, 02 Apr 12 05:57:14 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358493</guid>
			<description>
				<![CDATA[Karachi traders warn of civil disobedience; CNG association to mount court challenge.]]>
			</description>
			<content:encoded>
				<![CDATA[Transporters and traders across the country have categorically rejected the massive price hike in petroleum products — with the All Pakistan Transport Owners Association (APTOA) raising fares in protest and threatening to go on a nationwide strike if the government fails to retract its decision.


In a scathing reaction to the ‘illegal’ price hike, the APTOA on Sunday increased transportation fares across the country — five to seven per cent on inter-city routes.

Earlier, the association had condemned the fuel price hike and warned the government to reverse its decision. Transporters then gave the government a deadline till 8pm on Sunday.  Arshad Khan Niazi, secretary general of All Transport Association, said that when the government refused to pay any heed to our warning we increased the fares.

He said that fares for diesel buses have been increased from 5% to 7 % while those of CNG wagons have been increased by 10% which would be applicable on the CNG closure day. He said that the new fare for Islamabad is Rs650 which earlier was Rs600. For Karachi the new fare is Rs2,300, up from the previous Rs2,100.

The association complained that the government raised fuel prices at will, but never allowed them to hike fares.

Meanwhile, traders in Karachi said that if the government does not take back its decision within 72 hours, they will launch a civil disobedience movement which will turn into protests and strikes by the traders across the country.

For the first time in the country’s history, all three fuels – petrol, diesel and kerosene oil –cost over Rs100 per litre effective Sunday. Price of CNG has also been raised by up to Rs11.55 per kg.

Repercussions 

Talking to The Express Tribune, the representatives of local transporters, traders, chamber of commerce and CNG association have expressed grave concern over the recent hike saying the decision was tantamount to “crushing the middle class”.

The All Pakistan CNG Association has decided to move the high court challenging the decision they claim is in violation of laws and rules of Ogra.

Chairman Ghias Ullah Piracha said that this decision would be detrimental to the CNG industry since only the price of CNG was raised while the gas supplied to homes remained unaffected.

“The discrimination shows that the federal government has deliberately been targeting the CNG sector. If there is a gas shortage, the price for domestic users should have also been raised,” Paracha argued.

“Transporters are going to be the prime victim of the cruel hike in fuel prices,” All Pakistan Transporters Association President Malik Sultan Awan said.

Meanwhile, an emergency meeting of the All Karachi Tajir Ittehad, presided over by its Vice Chairman Jamil Ahmed Paracha, was held at the central office of the Bohra Pir Glass Merchants Group.

The meeting termed the recent increase in the prices of petroleum products and CNG tantamount to a “petrol bomb hurled on the masses”. The meeting decided that if the government did not restore the previous prices within 72 hours, more than 200,000 small traders of Karachi will start a civil disobedience movement by stopping payment of all the utility bills and taxes.

 ‘Fooling the nation’

Meanwhile, Pakistan People’s Party-Sherpao (PPP-S) Provincial President Sikandar Khan Sherpao said on Sunday that the government has once again fooled the nation by increasing tariffs of petroleum products.

(WITH INPUT BY OUR CORRESPONDENTS IN KARACHI, RAWALPINDI AND PESHAWAR)

Published in The Express Tribune, April 2nd, 2012.]]>
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			<title>Soaring oil prices: Amidst outcry, allies, opposition censure govt</title>
			<link>https://tribune.com.pk/story/358543/soaring-oil-prices-amidst-outcry-allies-opposition-censure-govt</link>
			<comments>https://tribune.com.pk/story/358543/soaring-oil-prices-amidst-outcry-allies-opposition-censure-govt#comments</comments>
			<pubDate>Mon, 02 Apr 12 01:28:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[qamar.zaman]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358543</guid>
			<description>
				<![CDATA[PML-N to boycott PCNS session; MQM demands immediate retraction.]]>
			</description>
			<content:encoded>
				<![CDATA[As Saturday’s massive increase in fuel prices triggered calls for a countrywide strike from transporters and traders, the Pakistan Peoples Party’s government came under scathing criticism from the opposition and allies alike.


The main opposition party, Pakistan Muslim League-Nawaz (PML-N), announced on Sunday that its lawmakers would boycott a meeting of the Parliamentary Committee on National Security (PCNS), scheduled for today (Monday).

“Boycott of the PCNS meeting, which is revisiting its recommendations on foreign policy, would be the first step against the government’s anti-people decisions,” said Leader of the Opposition in the National Assembly Chaudhry Nisar Ali Khan. “If the nation accepts this hike, it would prove they deserve rulers like (President Asif) Zardari,” Khan added.

About the PML-N’s future line of action, Chaudhry Nisar said, the party’s top leadership would make a decision. He added that other political forces would also be taken on board to chalk out a strategy to counter this ‘unjust’ step by the government. Terming the move a manifestation of bad governance, Khan said the president and the prime minister were enjoying foreign trips while the nation was suffering. Prime Minister Yousaf Raza Gilani is currently in China to attend the Boao Forum for Asia, and President Zardari will be travelling to India on a private tour next week.

Khan also announced that his party would stage a rally in Rawalpindi against the increase in petroleum and CNG prices. “All political forces, traders and people have to unite against these injustices being done by the government,” he said.

The opposition was not alone in criticising the government’s decision. The Muttahida Qaumi Movement (MQM), a collation partner of the PPP, also demanded an immediate withdrawal of the increase in fuel prices. The MQM said it would wait for the government till April 5 to take its decision back.

“The Coordination Committee is in consultation with parliamentarians to determine the party’s future course of action,” MQM spokesperson Wasay Jalil told The Express Tribune.

“We will wait till April 5, the day the joint session of Parliament resumes and announce our strategy if the government does not withdraw its decision,” he added. The Pakistan Muslim League-Quaid (PML-Q), another coalition partner of the PPP, described the decision as a ‘failure’ on part of the government. “It is a failure on the part of policymakers since such policies will create a wide gap between the masses and the government,” Senator Mushahid Hussain Sayed told The Express Tribune.

“A new national approach, above party lines, has to be forged by declaring an energy emergency, so that a workable plan of action is implemented to help ease the suffering of the people,” he added.

However, Mushahid termed PML-N’s reaction ‘uncalled for and unimaginative’.

Meanwhile, in a late night development petroleum minister Dr Asim Hussain met with President Zardari and briefed him on the increase in fuel prices. According to sources, the president advised him to review the prices.

Published in The Express Tribune, April 2nd, 2012.]]>
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			<title>MQM demands immediate retraction of petrol price hike</title>
			<link>https://tribune.com.pk/story/358275/mqm-demands-immediate-retraction-of-petrol-price-hike</link>
			<comments>https://tribune.com.pk/story/358275/mqm-demands-immediate-retraction-of-petrol-price-hike#comments</comments>
			<pubDate>Sun, 01 Apr 12 11:27:10 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358275</guid>
			<description>
				<![CDATA[Government advised to decrease non-developmental expenditures instead of raising petrol prices.]]>
			</description>
			<content:encoded>
				<![CDATA[The Muttahida Qaumi Movement (MQM) Coordination Committee said that the increase in petrol prices is a crime against the public and the decision should be retracted immediately, Express News reported on Sunday.

The committee added that the government should cut down on its non-developmental expenditures instead of raising petrol prices which has become a huge burden for the public.

Earlier, the All Pakistan Transport Owners Association (APTOA) said that if the government did not retract its decision of raising Petroleum, Oil and Lubricants (POL) prices, transporters will have no choice but to raise transportation fares as it will not be possible to keep transport running otherwise.

The association added that the government raises fuel prices whenever it feels like, but does not allow them to raise fares.

These statements were in response to the government’s announcement earlier in the day of another increase in the POL prices.

For the first time in the country’s history, all three fuels – petrol, diesel and kerosene oil – will cost over Rs100 per litre effective Sunday (today). Price of CNG has also been raised by up to Rs11.55 per kg.

With a Rs8.02 hike, per litre petrol price has jumped from Rs97.66 to Rs105.68, according to a notification issued by the Oil and Gas Regulatory Authority (Ogra) on Saturday night.

Per litre price of high speed diesel was raised by Rs4.70 – from Rs103.46 to Rs108.16 – while the price of kerosene oil was raised by Rs5.29 – from Rs96.40 to Rs101.69 per litre.

The price of High Octane Blending Component has been raised from the current Rs126.87 to Rs135.81 – an increase of Rs8.94.]]>
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			<title>Unprecedented: After diesel, petrol smashes Rs100 barrier</title>
			<link>https://tribune.com.pk/story/358151/unprecedented-after-diesel-petrol-smashes-rs100-barrier</link>
			<comments>https://tribune.com.pk/story/358151/unprecedented-after-diesel-petrol-smashes-rs100-barrier#comments</comments>
			<pubDate>Sun, 01 Apr 12 05:09:36 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=358151</guid>
			<description>
				<![CDATA[Massive hike in CNG prices - up to Rs11.58 per kg.]]>
			</description>
			<content:encoded>
				<![CDATA[For the first time in the country’s history, petrol prices have crossed the Rs100 per litre barrier.


And for the first time in the country’s history, all three fuels – petrol, diesel and kerosene oil – will cost over Rs100 per litre effective Sunday (today). Price of CNG has also been raised by up to Rs11.55 per kg.

With a Rs8.02 hike, per litre petrol price has jumped from Rs97.66 to Rs105.68, according to a notification issued by the Oil and Gas Regulatory Authority (Ogra) on Saturday night.

Per litre price of high speed diesel was raised by Rs4.70 – from Rs103.46 to Rs108.16 – while the price of kerosene oil was raised by Rs5.29 – from Rs96.40 to Rs101.69 per litre.

The price of High Octane Blending Component has been raised from the current Rs126.87 to Rs135.81 – an increase of Rs8.94.

Additional revenue

Ogra had proposed that fuel prices remain unchanged but the government turned down the recommendation. “The government would have to lose Rs3.25 billion in revenue if oil prices were not changed,” a senior government official said.

The government will pocket Rs25 billion on petroleum products from consumers in April, the official said, adding that due to the latest price hike, an additional Rs1.5 billion will be collected in revenue on account of sales tax.

The government had earlier decided, on a recommendation of a special parliamentary committee on oil pricing, to keep prices of HSD unchanged till June 2012.

That decision, however, was abandoned in favour of avoiding a subsidy and generating further revenue.

CNG prices reach new highs

In a simultaneous move, the government increased the prices of CNG by as much as Rs11.58 in the country. CNG prices were increased by Rs9.93 to Rs80.98 per kg in Sindh and Punjab.

Meanwhile, per kg prices were raised by Rs11.58 in Khyber-Pakhtunkhwa, Balochistan and Potohar region to Rs88.70.

The government has imposed 20% gas infrastructure development cess on CNG in a bid to collect revenue for gas pipeline projects. The price of CNG has also been brought to 55% of petrol.

Ogra authorities said CNG price hike was a decision of the federal government and it had not sent any advice to the government.

Published in The Express Tribune, April 1st, 2012.]]>
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			<title>Price hike: Petrol bomb expected in 7 days</title>
			<link>https://tribune.com.pk/story/340151/price-hike-petrol-bomb-expected-in-7-days</link>
			<comments>https://tribune.com.pk/story/340151/price-hike-petrol-bomb-expected-in-7-days#comments</comments>
			<pubDate>Wed, 22 Feb 12 11:50:58 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=340151</guid>
			<description>
				<![CDATA[Secret­ary Petrol­eum and Natura­l Resour­ces says prices will have to go up in seven days.]]>
			</description>
			<content:encoded>
				<![CDATA[Secretary Petroleum and Natural Resources Muhammad Ejaz Chaudhry on Wednesday revealed that petroleum prices will see a major hike in seven days, Express News reported.

Chaudhry was briefing the parliamentary committee on oil prices. The meeting was chaired by Rana Tanveer, who later walked out in protest over the upcoming price hike.

The petroleum secretary had informed the committee that keeping in view global prices, the government will have to raise the rates accordingly.

Tanveer said that the government gave them “lollipops” every time and the prices would still keep going up. He walked out of the meeting in protest.

Finance Minister Hafeez Sheikh then arrived and tried to take the committee into confidence over the decision.]]>
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			<title>LHC moved against petroleum price hike</title>
			<link>https://tribune.com.pk/story/330936/lhc-moved-against-petroleum-price-hike</link>
			<comments>https://tribune.com.pk/story/330936/lhc-moved-against-petroleum-price-hike#comments</comments>
			<pubDate>Thu, 02 Feb 12 15:35:11 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=330936</guid>
			<description>
				<![CDATA[Petitioner seeks removal of petroleum minister, demands detailed explanation of production and import costs.]]>
			</description>
			<content:encoded>
				<![CDATA[A petition was filed on Thursday in the Lahore High Court challenging the petroleum price hike and seeking the removal of petroleum minister Dr Asim Hussain.

The petition, filed by Advocate Muhammad Azhar Siddique, states that Hussain has failed to devise a strategy to control petroleum prices. It lists as respondents the government of Pakistan through the petroleum secretary, the Ministry of Petroleum and Natural Resources, the Oil and Gas Regulatory Authority (Ogra) and the Federal Board of Revenue (FBR).

The petitioner prayed that the respondents should be directed to give details about the method of determination for revising prices of petroleum products vis-a-vis the cost of production and supply, including different levies, duties and taxes and the disbursement of above collections to different heads.

He has also requested that the price increase be stayed. “Under the constitution, the government is bound to give relief to the people but it is increasing petroleum prices by choice. The government is receiving billions of rupees in taxes and duties from people which are not being spent for welfare of the public,” he said.

He also alleged that the government was shifting burden to the common man deliberately without informing the people how much petroleum it is purchasing from other countries and how much tax is being paid out of it. He said that the court should also note that petroleum prices in the international market are witnessing a falling trend but it is increasing in our country.]]>
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			<title>Govt may give in to pressure on petrol prices</title>
			<link>https://tribune.com.pk/story/142642/govt-may-give-in-to-pressure-on-petrol-prices</link>
			<comments>https://tribune.com.pk/story/142642/govt-may-give-in-to-pressure-on-petrol-prices#comments</comments>
			<pubDate>Mon, 04 Apr 11 02:28:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[riaz.taheem]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=142642</guid>
			<description>
				<![CDATA[Federal govt, in principle, agrees to lower petroleum prices by between Rs3 and Rs4 per litre.]]>
			</description>
			<content:encoded>
				<![CDATA[The federal government has, in principle, agreed to lower petroleum prices by between Rs3 and Rs4 per litre.


In a near repeat of last month’s retreat, the government will lower the scheduled price increase by half after the Muttahida Qaumi Movement, its coalition partner, held meetings with the  finance and interior ministers on Sunday.

On April 1, the government had decided to raise petroleum prices by between 9 per cent and 13 per cent in a bid to keep pace with rising international oil prices. Sunday’s decision appears to reduce those in creases by half, though details of the price changes were not yet available.

Last month, the government had announced a 10 per cent increase in domestic oil prices but was forced to reduce that hike to 5 per cent after intense pressure from the MQM as well as the opposition. MQM leaders appear to have been successful once again in getting a reduction, though they gave no indication to the press.

“We have been assured and we are hopeful that the decision will be reviewed,” said Farooq Sattar, the MQM parliamentary leader in the National Assembly, who led the MQM’s meeting with Finance Minister Abdul Hafeez Sheikh and Interior Minister Rehman Malik.

For their part, Sheikh and Malik kept trying to justify the price increase and gave no indication that a reduction had been agreed upon. “We always try to provide relief to people…but there are certain things beyond government’s control,” said Sheikh.

His comments were reaffirmed by Malik. “We all understand the problems people are facing and feel for them … but they should also understand these are very testing times,” the minister added.

Sheikh, however, said the administration would hold consultations within and with other political groups to see how the masses could be provided relief.

Prime Minister Yousaf Raza Gilani told the Senate last Friday the government was aware of peoples’ difficulties and would consider taking appropriate measures to offset the impact of fuel price hike.

Sources inside the finance ministry say that, at the request of President Asif Ali Zardari and Prime Minister Gilani, they have prepared a summary that would put the price reduction into effect. The order awaits their approval. Both leaders will be in Naudero at a party gathering marking the death of the PPP founder and former prime minister Zulfikar Ali Bhutto.

With additional reporting from Zia Khan in Islamabad

Published in The Express Tribune, April 4th,  2011.]]>
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			<title>'Soring international rates forced domestic petrol price hike'</title>
			<link>https://tribune.com.pk/story/142186/soring-international-rates-forced-domestic-petrol-price-hike</link>
			<comments>https://tribune.com.pk/story/142186/soring-international-rates-forced-domestic-petrol-price-hike#comments</comments>
			<pubDate>Sun, 03 Apr 11 09:20:25 +0500</pubDate>
			<dc:creator>
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			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=142186</guid>
			<description>
				<![CDATA[Finance Minister says ever-soaring prices of petroleum products at the international level forced govt to take steps.]]>
			</description>
			<content:encoded>
				<![CDATA[Finance Minister Hafeez Shaikh said on Sunday that the ever-soaring prices of petroleum products at the international level have forced the government to take unpopular steps.

Addressing the media after holding a meeting with leaders of the Muttahida Qaumi Movement (MQM), Shaikh said that the government did not want to shift the burden on the masses, but the soaring prices of petroleum products in the international market compelled them to increase prices domestically.

He said that the government is holding dialogues with all political parties to bring an end to the economic crisis.

Meanwhile, Interior Minister Rehman Malik said the government's policy of adopting austerity measures will be helpful in the future.

He said that the steps taken in this regard will result in saving as much as Rs25 billion.]]>
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			<title>Increase in POL prices draws consumers’ ire</title>
			<link>https://tribune.com.pk/story/141202/increase-in-pol-prices-draws-consumers%e2%80%99-ire</link>
			<comments>https://tribune.com.pk/story/141202/increase-in-pol-prices-draws-consumers%e2%80%99-ire#comments</comments>
			<pubDate>Sat, 02 Apr 11 05:11:27 +0500</pubDate>
			<dc:creator>
				<![CDATA[shabbir.mir]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=141202</guid>
			<description>
				<![CDATA[Gilgit-Baltistan residents call move ‘financial terrorism’.]]>
			</description>
			<content:encoded>
				<![CDATA[The government’s decision to increase petrol prices on April Fools’ Day is being termed ‘financial terrorism’ by people in Gilgit-Baltistan (G-B).


“[The price hike] is nothing but ‘financial terrorism’ on the part of the government,” said Tufail Ahmed, a businessman, on Friday. He said that people were already strapped for cash and resources and the current increase has simply added fuel to fire.

Others hoped it was an April fool’s prank. “I hoped it was an ‘April Fool Bomb’ when it was announced,” said a student.

The Oil and Gas Regulatory Authority raised POL prices by 9 to 13 per cent on Thursday.

Despite knowing that the majority of people in Pakistan, especially in G-B, are poor and many sell their children due to poverty, the ‘people’s friendly’ government keeps increasing the prices of items that are most essential to the poor.

“What will happen to people like us now? How will we survive after this?” were some of the questions people like Tanvir Ali and others asked. Ali purchased a taxi to earn a living but incessant price hikes have ruined his hopes.

“I was shocked to learn that the increase was more than 10 rupees per litre,” he said. He added that he has lost hope in the government.

Musa Karim, another resident of Gilgit, said, “It is the responsibility of the state to provide food and security to its people, but here the case is reversed: these necessities are being snatched from us.”

The abrupt increase in petroleum prices has dealt a crushing blow to the already resource-strapped people of G-B, with many running out of ways and means to make ends meet. “I am simply lost,” said Maqood Mohammad, an employee of an NGO. “There is no way out of this new quagmire.” 

Published in The Express Tribune, April 02nd, 2011.]]>
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			<title>Fuel prices: PM elicits advice on relief mechanism</title>
			<link>https://tribune.com.pk/story/141518/fuel-prices-pm-elicits-advice-on-relief-mechanism</link>
			<comments>https://tribune.com.pk/story/141518/fuel-prices-pm-elicits-advice-on-relief-mechanism#comments</comments>
			<pubDate>Sat, 02 Apr 11 02:32:07 +0500</pubDate>
			<dc:creator>
				<![CDATA[zia.khan]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=141518</guid>
			<description>
				<![CDATA[Partial withdrawal of the latest revision in petrol prices is one of the options under consideration.]]>
			</description>
			<content:encoded>
				<![CDATA[The government on Friday hinted at partially scrapping Thursday’s fuel price revision in the wake of severe criticism from political parties and trade unions alike, with Prime Minister Yousaf Raza Gilani promising consultations to lessen the economic burden of the masses.


Gilani told the Senate that his administration understood the increase was a matter of concern for people and would devise a mechanism in consultation with the political leadership to provide relief to the masses.

“I will ask the finance minister to sit with the leadership and find out how relief can be given to the masses. We need your assistance and advice,” said the premier in response to points of order in the Senate. “We are politicians and we have to deliver to the public. We cannot afford to be rejected by the masses.”

Later finance ministry officials told The Express Tribune a partial withdrawal of up to 13 per cent increase in different petroleum products announced overnight could be one of the options the government could consider to soften the blow on the average citizen.

The latest revision — fuelled by soaring oil prices in the global markets after international forces led by the US-led coalition launched air strikes on Libya  — sparked an outcry across different segments of society.

Last month, the government had to cut by half the increase it announced in the fuel prices after a key coalition ally, the Muttahida Qaumi Movement (MQM), pushed for an immediate review.

“The same thing can happen again and it should,” a statement issued from the MQM’s headquarters in Karachi said.

The statement quoted MQM chief Altaf Hussain as saying that an urgent review of the move was needed and that the administration ought to bear the cost of the subsidy instead of passing it on to the public.

But a party leader later told The Express Tribune from Lahore that the MQM might accept an offer by the government to consider “other options” to provide relief to the masses instead of scrapping the increase altogether.

Within a couple of days, he said, a delegation of the party would hold a meeting with a government economic team and work out a solution.

Sources privy to the matter told The Express Tribune that the financial experts of the MQM and the PPP would meet at the Governor House on Saturday. The MQM team will ask the PPP to explain the true mechanism of ascertaining the POL prices.

Sources claimed that the meeting would be decisive and if the PPP team declined to rationalise the increase in POL prices, the MQM would take a strong stance and would pull out from the coalition government.

Another government ally, the Awami National Party (ANP), has also criticised the price increase which it said was made without consultation.

Last November, Gilani formed a multi-party parliamentary committee to suggest how the government could respond to oil price fluctuations on the international market. But this panel was never consulted.

“This is not in the true spirit of democracy,” ANP Senator Haji Adeel said in comments aired by a private television channel.

The main opposition party Pakistan Muslim League-Nawaz (PML-N) has also hit out at the increase.  “It is unjustified…the government is transferring the burden of its failures to the public,” the party’s spokesperson Ahsan Iqbal said in a statement.

His party wants the government to evolve a transparent mechanism for fixing oil prices to avoid putting more pressure on people’s personal economy. He did not, however, elaborate what this new system should be.

With additional reporting by Irfan Aligi in Karachi

Published in The Express Tribune, April 02nd, 2011.]]>
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			<title>Oil price hike</title>
			<link>https://tribune.com.pk/story/141011/oil-price-hike</link>
			<comments>https://tribune.com.pk/story/141011/oil-price-hike#comments</comments>
			<pubDate>Fri, 01 Apr 11 16:51:38 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=141011</guid>
			<description>
				<![CDATA[It is incumbent on us to realise that this price hike is going to disproportionately affect the middle class and poor.]]>
			</description>
			<content:encoded>
				<![CDATA[With the IMF breathing down its neck and the world price of oil galloping to over $100 a barrel, the government took the painful step of increasing the price of petrol by nine per cent, making it just over Rs83.50 per litre. Let us be clear about one thing. This is not a case of a rapacious government trying to fleece its citizens out of every last rupee. Rather, it is a reduction in the subsidy already being granted to consumers of petroleum products. The Oil and Gas Regulatory Authority says that in the last six months, by not passing on the entire increase in oil prices to the consumer, the government has ended up losing Rs35 billion in foreign exchange. Such a situation was clearly not sustainable for a government that has been teetering on the brink of solvency, making this price hike a painful but necessary step.

Undeniably, the turmoil in the Middle East has caused a sudden rise in the international price of oil and some commentators are predicting that it may soon go upwards of $150 a barrel. What the government now needs to ask itself is if it is willing to further subsidise petroleum products even with a likely increase in oil prices. While acknowledging the necessity of this step, it is incumbent on us to realise that this price hike is going to disproportionately affect the middle class and the poor. It is a sad truth that petrol and diesel are vital to Pakistan’s economy and that the increase in its prices will lead to inflation throughout the economy. The price of food, for example, will rise since the cost of transporting food has now increased.

There is no short-term solution to the conundrum the government finds itself in. There is nothing it can do about the vagaries of international oil prices. In the long run, however, we have to reduce our dependence on imported oil. What we need is a significant investment in solar and wind power, which, while not completely getting rid of our need for oil, will provide cleaner and cheaper energy. It is time to find alternatives to oil as fuel for our economy.

Published in The Express Tribune, April 2nd,  2011.]]>
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			<title>Petrol price hike: Gilani to consider subsidy</title>
			<link>https://tribune.com.pk/story/140884/govt-decides-on-up-to-13-increase-in-oil-prices</link>
			<comments>https://tribune.com.pk/story/140884/govt-decides-on-up-to-13-increase-in-oil-prices#comments</comments>
			<pubDate>Fri, 01 Apr 11 15:15:34 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=140884</guid>
			<description>
				<![CDATA[OGRA increases prices of petroleum products by 10 to 13 per cent, criticism pours in. New CNG price announced.]]>
			</description>
			<content:encoded>
				<![CDATA[Prime Minister Yusuf Raza Gilani on Friday promised to consider subsidising fuel prices after the hike was challenged in Lahore High Court (LHC) earlier in the day.

Addressing the Senate session, Gilani said that Pakistan's taxes on petroleum products are among the lowest in the world.

Earlier, criticism pored in from all sides after the Oil and Gas Regulatory Authority increased the prices of petroleum products by 10 to 13 per cent.The Muttahida Qaumi Movement (MQM) rejected the hike in petroleum prices saying that the move is unacceptable.

Senior MQM leader Dr Farooq Sattar informed the federal finance  minister about his party's concerns over the hike. The MQM has summoned a meeting of its coordination committees in  Karachi and London to discuss the petrol price hike.

Moreover, the party denounced the latest increase as "sheer injustice" and urged the government to revoke the raise.

"The people of Pakistan are already under the burden of high prices and the government's decision to once again increase fuel prices will put further pressure on the people," the party said in a statement.

Pakistan Muslim League-Nawaz (PML-N) leader Nawaz Sharif on Friday also rejected the new petrol prices and  demanded a withdrawal.

According to a press release, Sharif blamed the government for  failing to control corruption. He said that the rise in petrol prices will create a new burden  on the poorer segments of the society.

The PML-N leader warned the government not to test the patience of  the people. He also said that the petrol bomb on the masses will cause more  inflation and increase the misery of the people.

"The government should curb corruption and cut its own expenditures to raise revenues instead of creating problems for the poor people," party spokesman Siddiqul Farooq told Reuters.

CNG price increased, decreased

The All Pakistan Compressed Natural Gas Association announced new prices of Compressed Natural Gas (CNG). The price of the commodity has been increased Punjab and Sindh, and decreased in Balochistan and Khyber-Pakhtunkhwa.

The new price of CNG in Punjab and Sindh has been increased by two rupees and thirty-three paisas, and is now Rs55.78.

The association’s president stated that the price was increased as a result of the high cost of production.

In Balochistan and Khyber-Pakhutnkhwa the price of the commodity has been decreased by thirty paisas.

Updated from print edition (below)

Govt decides on up to 13% increase in oil prices

In a decision made in the early hours of Friday morning, the government decided to increase oil prices by between nine per cent and 13 per cent for the month of April.

“The government has decided an increase of up to 13 per cent,” the Finance Minister Abdul Hafeez Sheikh told The Express Tribune.

Petrol prices are scheduled to go up by Rs6.90 per litre, or 9 per cent, to Rs83.48 per litre. High Speed Diesel prices are expected to go up by Rs10.67 per litre, or 13.2 per cent, to Rs93.08 per litre.

As The Express Tribune went to press, the notification for increased oil prices had not gone up on the website of the Oil  and Gas Regulatory Authority.

The decision comes in the wake of concerns that the government would not increase oil prices after coming under heavy political pressure from the opposition as well as its own coalition allies, particularly the Muttahida Qaumi Movement (MQM).

“The prime minister has directed the finance ministry a mechanism to provide relief to the end consumer but the government had to increase oil prices,” said Finance Secretary Waqar Masood, referring to the populist pressure on the government to keep oil prices down.

In the wake of a surge in global oil prices, the government has been absorbing the increase through lower petroleum taxes, which is denting its revenue targets. The government has already taken a Rs21 billion hit in revenue collection as a result of the decision to freeze oil prices from December to February and only partially pass them on in March. The total financial impact will come to around Rs37 billion or 0.2 per cent of the total size of the economy.

The government has set a target of Rs110 billion in revenues from petroleum taxes but due to its inability to apply a consistent rate, it has only collected Rs34 billion in six months.

Last month, the government increased the petroleum prices by ten per cent but later halved the increase within five days, owing to intense pressure from the MQM.

In recent months, the government has been considering launching targeted subsidies for the poorest segments of society to shield itself from the criticism that it does not protect the most economically vulnerable citizens. This approach would likely be less costly than the current approach of controlling prices through varying tax rates.

“The approach is that instead of giving general subsidies to the people, the government would rather give targeted subsidies, and will also take all possible efforts to ensure that these are not abused by the wealthy people,” said the finance minister earlier this month.

Published in The Express Tribune, April 1st, 2011.]]>
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			<title>Myth vs Reality: Rs164b collected through tax on petroleum products</title>
			<link>https://tribune.com.pk/story/140669/myth-vs-reality-rs164b-collected-through-tax-on-petroleum-products</link>
			<comments>https://tribune.com.pk/story/140669/myth-vs-reality-rs164b-collected-through-tax-on-petroleum-products#comments</comments>
			<pubDate>Fri, 01 Apr 11 05:22:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=140669</guid>
			<description>
				<![CDATA[FBR report contradicts government’s claim of subsidised oil.]]>
			</description>
			<content:encoded>
				<![CDATA[The poor and rich alike have paid Rs164 billion in taxes on petroleum products during the first half of the current financial year, contradicting the government’s claim of subsidising petroleum products, according to a latest official report.


The government collected Rs128.3 billion on account of sales tax, customs duty and federal excise duty during July through December 2010, states the second quarter review of the Federal Board of Revenue (FBR).

The collection under these heads comes to almost one-fifth of total taxes collected by FBR during this period. Additionally, the Rs128 billion collected exceeds the collection in the corresponding period of the preceding year by Rs18 billion.

An amount of Rs35.5 billion was collected on account of petroleum levy, taking the total collection on petroleum products to Rs163.8 billion, nearly one per cent of the total size of economy.

The collection on account of sales tax, customs duty and federal excise duty has become part of the federal divisible pool and 56 per cent of the pool goes to the provinces under the seventh National Finance Commission Award. The petroleum levy is out of the divisible pool and is therefore not being collected by FBR.

The government is claiming that it has so far paid Rs21 billion in subsidies after freezing the petroleum product prices from December through February, a claim not supported by statistics.

The FBR report states that the authorities collected Rs118.2 billion on account of 17 per cent sales tax. Out of that, Rs54.9 billion was collected at the import stage and Rs63.3 billion on domestic sales. On top of these, Rs7.8 billion custom duties and Rs2.3 billion excise duties were collected during the period.

In the six months, FBR collected Rs661.6 billion in taxes, out of which Rs241 billion was on account of direct taxes, which came to 36.5 per cent of total collection. Almost 60 per cent of direct taxes came through withholding tax, which is actually not a direct mode of taxation. Major sources of withholding tax were contracts, imports, salaries, telephone and electricity bills, exports, bank interest and cash withdrawal from banks.

FBR collected Rs151.4 billion in withholding tax during the first half, out of which Rs38 billion was generated through deduction of three per cent of the contract value. The amount is almost 10 per cent less than last year due to a substantial cut in public sector development budget.

FBR collected Rs28.8 billion on imports and Rs19.8 billion through salaries. Besides, Rs13 billion was collected through telephone bills and Rs7 billion through electricity bills, irrespective of poor and rich consumers. Additionally, FBR collected Rs6.8 billion on account of tax on cash withdrawal from banks, almost nine per cent more than the collection in the corresponding period last year.

Published in The Express Tribune, April 1st, 2011.]]>
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			<title>Petrol sales suspended due to anticipated price hike</title>
			<link>https://tribune.com.pk/story/140819/petrol-sales-suspended-due-to-anticipated-price-hike</link>
			<comments>https://tribune.com.pk/story/140819/petrol-sales-suspended-due-to-anticipated-price-hike#comments</comments>
			<pubDate>Fri, 01 Apr 11 03:51:38 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=140819</guid>
			<description>
				<![CDATA[Long queues witnessed in front of pumps that briefly resumed sales.]]>
			</description>
			<content:encoded>
				<![CDATA[Several petrol pumps on Thursday suspended the sale of petrol expecting a rise in petroleum prices. These pumps, however, continued selling diesel oil.


The situation caused severe inconvenience to the commuters.

Residents of areas falling in Lahore Cantonment were the worst affected as all the petrol pumps there remained closed.

Yasir Khan, a motorcyclist in Cantonment, said he had been moving around in search of petrol for half an hour.

“Every petrol pump I visited said that they had run out of fuel,” he said. “They’re a mafia. How can all of them run out of stock at the same time,” he commented.

Long queues of cars and motorcycles were observed at the few pumps that resumed sales for some time in other parts of the city.

Usman Ahmad, waiting in a queue at a petrol pump on Ferozepur Road, said the pump was not selling petrol for more than Rs100 to anyone. He said he must have wasted as much fuel in searching for a pump that was selling petrol.

Ahmad criticised the government for not taking action against pumps hoarding on petrol.

Some people had to walk long distances, dragging their motorcycles that had run out of fuel.

Saleem Ahmad, one such motorcyclist on Sarfaraz Rafiqi Road, said that his motorcycle had run out of petrol. He said he went to three petrol pumps and all three said they had run out of petrol. He said from then onwards he had been dragging his motorcycle.

Ahmad said usually he got his motorcycle’s fuel tank filled on the last day of the month. He said he could not do so on Wednesday because he was watching Pakistan-India semifinal.

He said suspending sales ahead of a price hike had become a common practice with the petrol pumps. “I wonder if the government is unable to take action against these pumps or if it is condoning this as legitimate business strategy,” he said.

A petrol pump owner speaking on condition of anonymity admitted that the petrol pumps suspended supply ahead of an expected hike in prices.

He said the margin between the sale price and the purchase price had fallen so low that suspending supply whenever a price hike was expected was the only way to make some profit. He said most petrol pumps ordered an extra tanker in such situations to increase profits.

Petrol Pump Owners’ Association (PPOA) Information Secretary Khwaja Atif said the association does not support such petrol pumps. However, he said, it was the government’s responsibility to penalise these pumps.

“We can only request them to resume operations. We can’t force them to submit to our will,” he said. He said the association could not take legal action against the pumps.

However, he said, the association would not support the pumps if the government took any action against them.

Published in The Express Tribune, April 01st, 2011.]]>
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			<title>Fuel prices: Government may launch targeted subsidies</title>
			<link>https://tribune.com.pk/story/127950/fuel-prices-government-may-launch-targeted-subsidies</link>
			<comments>https://tribune.com.pk/story/127950/fuel-prices-government-may-launch-targeted-subsidies#comments</comments>
			<pubDate>Sat, 05 Mar 11 04:36:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=127950</guid>
			<description>
				<![CDATA[Ability to carry out reforms subject to coalition politics.]]>
			</description>
			<content:encoded>
				<![CDATA[The government may switch from general to targeted fuel subsidies to facilitate the neediest citizens if global oil prices keep rising, stated Finance Minister Abdul Hafeez Shaikh on Friday.


The disclosure comes on the heels of the government’s decision to reduce the magnitude of its increase in domestic petroleum prices by half after it came under pressure from its coalition allies, the Muttahida Qaumi Movement (MQM).

Petrol prices are now expected to rise by an average of 4.95 per cent, as opposed to the earlier proposal of 9.9 per cent.

“The approach is that instead of giving general subsidies to the people, the government will rather give targeted subsidies, and will also take all possible efforts to ensure that these are not abused by the wealthy people,” said Sheikh.

It may be mentioned that the government still has to seek approval for this proposal from the International Monetary Fund (IMF), which has already expressed its opposition with respect to the subsidies.

The quantity and the mechanism for these targeted subsidies are therefore yet to be finalised.

Sheikh stated that it was inappropriate for the wealthy to receive subsidies on petroleum products as much as the poorer people.

The administration has come under sharp criticism for apparently backtracking on an economically necessary decision in the face of political expediency.

“I think after political consultation five per cent increase in the petroleum products is appropriate,” stated the finance minister.

“In any country the economic managers have to strike a balance between public desire, politically possible things and economic requirements of the country.”

The minister, however, seemed to have some trouble maintaining that balance during his meeting with the press in Islamabad.

At one point, he reiterated the government’s position that rising international oil prices meant that petroleum subsidies were no longer affordable.

He also criticised politicians for trying to hijack the economy for political purposes.

“We have to restrain ourselves from playing politics with sensitive economic issues, as point scoring on crucial economic issues will destroy the economy.”

However at another occasion, he said that the “political consensus was the need of the hour.”

Ultimately, however, the finance minister seemed to conclude that his ability to pursue economic policies was dependent on the strength of the ruling coalition in Parliament.

“The government wants to carry forward the reforms agenda but cannot afford to lose political support.”

Published in The Express Tribune, March 5th, 2011.]]>
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			<title>OGRA notifies price reversal</title>
			<link>https://tribune.com.pk/story/127955/ogra-notifies-price-reversal</link>
			<comments>https://tribune.com.pk/story/127955/ogra-notifies-price-reversal#comments</comments>
			<pubDate>Sat, 05 Mar 11 02:53:53 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=127955</guid>
			<description>
				<![CDATA[Government formally halves the almost 10 per cent increase in petroleum products prices.]]>
			</description>
			<content:encoded>
				<![CDATA[The government beat yet another hasty retreat under intense political pressure on Friday after it formally halved the almost 10 per cent increase in petroleum products prices.


The Oil and Gas Regulatory Authority (Ogra) issued the notification late Friday night. According to Ogra and the petroleum ministry officials, the notification will be effective from March 5.

The decision, experts say, is likely to result in a massive shortfall in petroleum  levy collection.

An official of the finance ministry said that the government move would cause an additional loss of Rs3.5 billon to the national exchequer, taking the total March impact to Rs8.5 billion.

The government has already absorbed Rs13 billion in oil subsidies between December and February.

The authorities estimated that the government collected Rs110 billion till June last year. Finance ministry documents showed that during the first six months of the current financial year, it pooled only Rs 35 billion.

According to an Ogra official, the government has reduced the petrol prices to Rs76.58 per litre against the March 1 price of Rs80.19 per litre, a reduction of Rs3.61 per litre. The reduction was only possible after reducing petroleum levy to Rs 3.16 a litre from the March 1st level of Rs6.25. Under the Finance Bill 2010, the government had levied Rs10 per litre levy on petrol.

The high-speed diesel prices were also slashed to Rs82.22 per litre- a reduction of Rs3.81 per litre. Again the government reduced levy to almost nil,.44 paisa per litre from Rs3.75.

On February 28, the government increased petroleum products’ prices by up to 10 per cent, contending that prices in the international market had gone up by 25 per cent over the past three months. It had argued that despite 10 per cent increase it was absorbing Rs5 billion in subsidy.

The Express Tribune contacted the IMF country mission for its comments on the latest decision. In a very terse reply, the Fund Mission replied: “We have no comments at this time.”

The government also reduced kerosene oil prices by Rs3.5 per litre. It notified the new price of Rs74.45 per litre. Its previous notified price was Rs77.95 per litre. Instead of earning any revenue, the government would now give a subsidy of Rs 2.74 per litre on kerosene oil.

The price of light diesel oil was also cut by Rs3.3 per litre. It will now be sold at Rs69.91 against the March 1 rate of Rs73.21 per litre. On this fuel too, the government will give a subsidy of Rs2.82 per litre.

On High Octane Blending Component the government provided Rs 4.29 per litre relief. The new HOBC prices will be Rs90.96 per litre against the earlier rates of Rs95.25 per litre. In the case the government has increased Rs 5.58 per litre prices over October level and would earn Rs 6.13 per litre subsidy.

Published in The Express Tribune, March 5th, 2011.]]>
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			<title>Karachi Transport Union calls off strike</title>
			<link>https://tribune.com.pk/story/127606/karachi-transport-union-calls-off-strike</link>
			<comments>https://tribune.com.pk/story/127606/karachi-transport-union-calls-off-strike#comments</comments>
			<pubDate>Fri, 04 Mar 11 14:01:10 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=127606</guid>
			<description>
				<![CDATA[Strike called off after government opts to decrease petroleum prices across Pakistan.]]>
			</description>
			<content:encoded>
				<![CDATA[The Karachi Transport Union called off its strike against an  increase in petroleum prices on Friday. The decision came in the wake of a meeting between unionists and the Sindh  governor. 
The meeting took place at Governor's House in Karachi, following which the government approved the summary to  decrease petroleum prices across Pakistan. Karachi Transport Union President Irshad Bukhari thanked the  government for resolving the issue. He praised the MQM for helping out with the crisis.
Governor Sindh Isharatul Ibad said the MQM chief had spoken to the President about the issue. The MQM had been pressing the government side to reverse the fuel prices to the level they were pegged at before the raise was announced.
Strike by the transport union had brought Karachi to a standstill,  which negatively affected local businesses.]]>
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			</item><item>
			<title>Petroleum Levy: Govt collects Rs35b in six months</title>
			<link>https://tribune.com.pk/story/127296/petroleum-levy-govt-collects-rs35b-in-six-months</link>
			<comments>https://tribune.com.pk/story/127296/petroleum-levy-govt-collects-rs35b-in-six-months#comments</comments>
			<pubDate>Fri, 04 Mar 11 06:22:15 +0500</pubDate>
			<dc:creator>
				<![CDATA[Irshad Ansari]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=127296</guid>
			<description>
				<![CDATA[Government had set the petroleum levy collection target at Rs110 billion in the 2010-11 fiscal budget.]]>
			</description>
			<content:encoded>
				<![CDATA[The government has collected Rs35.44 billion as petroleum levy in the first six months of the current fiscal year.

According to finance ministry officials, the government had set the petroleum levy collection target at Rs110 billion in the 2010-11 fiscal budget.

Officials were pessimistic about meeting the target, claiming that it would be unlikely in the current state of the economy. Despite the recent oil price hike, as a result of which petrol and diesel prices have risen by up to 10 per cent each, the increment is likely to prove insufficient in helping meet the target, particularly because of the severe losses the government incurred in December and January.

The government will still be taking a hit of up to Rs5 billion in the form of subsidies on petroleum products in March.

Published in The Express Tribune, March 4th, 2011.]]>
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			<title>Petroleum prices: Federal govt, OGRA issued notices</title>
			<link>https://tribune.com.pk/story/127322/petroleum-prices-federal-govt-ogra-issued-notices</link>
			<comments>https://tribune.com.pk/story/127322/petroleum-prices-federal-govt-ogra-issued-notices#comments</comments>
			<pubDate>Fri, 04 Mar 11 05:49:23 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=127322</guid>
			<description>
				<![CDATA[LHC seeks reply from federal government and OGRA chairman within two weeks on application against price increase.]]>
			</description>
			<content:encoded>
				<![CDATA[The Lahore High Court on Thursday sought reply from the federal government and Oil and Gas Regularity Authority (Ogra) chairman within two weeks on an application against the recent increase in petroleum prices.

Justice Sheikh Azmat Saeed of the Lahore High Court passed this order on the application filed by Consumer Rights Forum Pakistan secretary Muhammad Hanif Goraya through his counsel Mateenul Haq Chaudhry as part of an already pending writ petition on the same matter.

Published in The Express Tribune, March 4th, 2011.]]>
			</content:encoded>
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				    <img src="https://i.tribune.com.pk/media/images/Lahore-High-Court-LH_1735627004/Lahore-High-Court-LH_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Fuel price revision halved</title>
			<link>https://tribune.com.pk/story/127432/fuel-price-revision-halved</link>
			<comments>https://tribune.com.pk/story/127432/fuel-price-revision-halved#comments</comments>
			<pubDate>Fri, 04 Mar 11 02:22:57 +0500</pubDate>
			<dc:creator>
				<![CDATA[Hafeez Tunio]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=127432</guid>
			<description>
				<![CDATA[Finance Minister Hafeez Sheikh makes announcement after negotiations with MQM team.]]>
			</description>
			<content:encoded>
				<![CDATA[Federal Finance Minister Hafeez Sheikh announced on Thursday that the recent increase in the prices of petroleum products will be slashed by 50 per cent.


The late-night announcement of this cut came after the finance minister held detailed negotiations with the Muttahida Qaumi Movement  (MQM) delegation at the Sindh Governor House.

A notification of the price cut was, however, not issued immediately and is expected to be released some time on Friday.

The talks were held in the backdrop of telephonic discussions between MQM chief Altaf Hussain and President Asif Ali Zardari. Sheikh was assisted in the talks by Interior Minister Rehman Malik while the MQM team was led by its parliamentary leader Dr Farooq Sattar.

Hafeez Sheikh told a news briefing after the talks that even though international oil prices started climbing following turbulence in the Afro-Arab world, the government kept steady the domestic prices. In doing so, the government had to give Rs5 billion subsidy in January and Rs8 billion in February to absorb the shock and give relief to the public.

However, since international prices have risen 26 per cent since November, the government decided to pass on only up to 9.9 per cent of the impact at the end of February. Still the government decided to continue giving subsidy of up to Rs5 billion from the national  However, President Zardari was approached by MQM chief Altaf Hussain who briefed him of the immense difficulties the people were bound to face because of the fuel price rise.

Therefore, after discussions, the government has decided to cut the fuel price hike by 50 per cent and bear the financial burden itself.

He said we should hope that international prices stabilise in the days ahead so the government could give more relief to the public.

Interior Minister Rehman Malik urged the transporters to withdraw their strike call for Friday after the government announced relief in fuel prices.

Sindh Governor Ishratul Ebad and MQM’s parliamentary party leader Farooq Sattar briefed the media in detail of the efforts made by the party chief Altaf Hussain to ease the pain of price rises.

Earlier, the MQM-government talks were held till late night. The MQM was pressing the government side to reverse the fuel prices to the level they were pegged at before the raise was announced. This resulted in a long-drawn-out discussion.

The MQM team included Dr Farooq Sattar, Hyder Abbas Rizvi, Babar Ghauri, Syed Sardar Ahmed and  Abdul Rashif Godal.  Governor Sindh Dr Ishratul Ebad Khan was also present on the occasion.

Sources said that Finance Minister Hafeez Shaikh reportedly tried to persuade the party about the financial constraints faced by the government in view of which it was pretty hard for the government to continue giving subsidy on petroleum prices.

At one point, the minister reportedly agreed to reduce prices by three per cent. However, the insistence of the party resulted in a larger quantum of relief.

Earlier, President Asif Ali Zardari met Finance Minister Hafeez Shaikh and Governor State Bank of Pakistan Shahid H Kardar at the Zardari House in Karachi.   During the meeting the minister briefed the president about the consequences if prices of POL were reversed to the previous level.

Sources said that they briefed the president that government cannot afford to give more subsidy on POL.  The President, sharing with them the concerns of the MQM and other quarters directed the finance minister to listen to the concerns of the MQM and resolve the matter amicably.

Presidential spokesperson Farhatullah Babar said that the economic managers briefed the President about the state of the economy and the steps being taken to address the challenges. The President emphasized the need for enlarging social safety net for the poorest of the poor, broadening the tax base and giving special incentives for attracting remittances from overseas Pakistanis through regular banking channels.

The President said that during his meeting in Kuwait with Turkish President Abdullah Gul had offered to send his Minister to Pakistan to examine participation in the shares based bonds soon to be floated by Pakistan. The President stressed for early completion of preparations for floating bonds, he said.

Earlier Governor Sindh, Dr. Ishratul Ebad Khan and Shahi Syed, President Awami National Party (ANP) held separate meetings with president at the Bilawal House. Sources said that the agenda of both the meetings was fuel prices.  Talking to The Express Tribune, Shahi Syed said that they briefed the President Zardari about transporters concerns.

Published in The Express Tribune, March 4th, 2011.]]>
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			<title>MQM skirts crisis over fuel price hikes</title>
			<link>https://tribune.com.pk/story/126944/mqm-skirts-crisis-over-fuel-price-hikes</link>
			<comments>https://tribune.com.pk/story/126944/mqm-skirts-crisis-over-fuel-price-hikes#comments</comments>
			<pubDate>Thu, 03 Mar 11 13:57:22 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=126944</guid>
			<description>
				<![CDATA[The MQM had sharply criticised the latest price increase, raising fears it would quit again.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan's coalition government appeared on Thursday to have avoided a potentially destabilizing crisis after a key partner dropped demands to scrap a fuel price hike that is part of vital financial reforms. 

Sources in the Muttahida Quami Movement (MQM), the third  biggest party in the coalition, said on Thursday the party was discussing with President Asif Ali Zardari ways to offset the effect of the almost 10 percent fuel price increase imposed on March 1.

"Our team is meeting the president and the finance minister to work out ways to provide relief to the people," said a senior MQM leader who declined to be identified.

"We are a party with an open mind, and we are ready to listen to everyone if it can help provide relief for our people," he said, adding that a Friday deadline given by the MQM to overturn the fuel price increase had been withdrawn.

The MQM left the government in protest the last time fuel prices were raised in January and only rejoined the coalition after the hike was reversed. The MQM had sharply criticised the latest price increase, raising fears it would quit again.

Political stability in Pakistan, a key ally of the United States in the region, is considered vital for ending the war in Afghanistan.

Analysts said keeping the MQM in the coalition would signal to the International Monetary Fund (IMF) that Pakistan was serious about its pledges for financial reform. Pakistan relies on an $11 billion bailout package that has propped up its flailing economy since 2008.

A key condition of the next tranche of the seven part loan, currently under review, is fiscal reform, including tax increases and ending subsidies.]]>
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			<title>Transporters observe strike throughout Karachi</title>
			<link>https://tribune.com.pk/story/126844/transporters-observe-strike-throughout-karachi</link>
			<comments>https://tribune.com.pk/story/126844/transporters-observe-strike-throughout-karachi#comments</comments>
			<pubDate>Thu, 03 Mar 11 08:06:25 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=126844</guid>
			<description>
				<![CDATA[Transporters and the Oil Tankers Association are observing a strike to protest the increase in petroleum prices.]]>
			</description>
			<content:encoded>
				<![CDATA[Transporters and the All Pakistan Oil Tankers Association are observing a strike to protest the increase in petroleum prices in Karachi.

Large number of people could be seen lined up at bus stops across the city.

The All Pakistan Transport Owners Federation also announced to raise fares across the country.

General Secretary Arshad Niazi said inter-city bus fares have been hiked after the government's decision to increase petroleum prices.

The transporters in Karachi threatened to continue the strike until the government meets their demands.

Meanwhile, transporters in Khyber-Pakhtunkhwa also announced an increase of about 10 per cent in bus fares.]]>
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			<title>‘Gasoline demand to triple by 2025’</title>
			<link>https://tribune.com.pk/story/126583/%e2%80%98gasoline-demand-to-triple-by-2025%e2%80%99</link>
			<comments>https://tribune.com.pk/story/126583/%e2%80%98gasoline-demand-to-triple-by-2025%e2%80%99#comments</comments>
			<pubDate>Thu, 03 Mar 11 05:02:06 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=126583</guid>
			<description>
				<![CDATA[Population and economic growth will help Pakistan’s motor gasoline consumption triple in the next 15 years.]]>
			</description>
			<content:encoded>
				<![CDATA[Population and economic growth will help Pakistan’s motor gasoline consumption triple in the next 15 years, according to the head of Attock Refinery Limited (ARL).

“There is huge demand for motor gasoline,” said Adil Khattak, Chief Executive Officer of the 45,000 barrels per day (bpd) refinery, at a conference organised by Argus. Khattak’s figures showed that domestic demand for gasoline is around two million tons and is to double to four million tons by 2020.

Demand for fuel oil will rise to 12 million tons by 2025, from the current level of 10 million and diesel to over 10 million tons from below nine million. “Fuel oil demand is rising due to higher thermal power generation,” said Khattak.

The country is heavily dependent on imports for refined oil product needs, as its five refineries produce a total of 12.93 million tons of oil products, while total consumption is over 20 million tons.

There are plans to add nearly 30 million tons of capacity through new refineries and upgrades, but Khattak said the government’s pricing mechanism for fuel has discouraged investments.

“Most of these projects are on hold. As long as this pricing issue is not resolved, the country will be dependent on petroleum imports,” he said. He added that in January, Attock planned to upgrade its refinery to help fill the gasoline deficit.

Most countries in the region, ranging from India to Indonesia, subsidise fuel sales with retail prices capped by the government to tame inflation – a move that can pare income for refineries and potentially threaten their investment plans.

Published in The Express Tribune, March 3rd, 2011.]]>
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			<title>Petrol prices: Lawyer goes to court against strikes</title>
			<link>https://tribune.com.pk/story/126549/petrol-prices-lawyer-goes-to-court-against-strikes</link>
			<comments>https://tribune.com.pk/story/126549/petrol-prices-lawyer-goes-to-court-against-strikes#comments</comments>
			<pubDate>Wed, 02 Mar 11 19:41:13 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=126549</guid>
			<description>
				<![CDATA[Public transporters taken to court for announcing strikes every time the government increases petrol prices.]]>
			</description>
			<content:encoded>
				<![CDATA[A lawyer has taken public transporters to court for announcing strikes every time the government increases petrol prices.

Farah Awan advocate asked the court to restrain the Karachi Transport Ittehad (KTI) from going on an indefinite strike today. She accused the transporters of using the strike call to pressure the government into letting them increase fares. Her lawyer Javaid Chattari said that any call for a strike is made as a last resort. The KTI should first approach the authorities to seek a revision in fares and then go on strike after due process of law. Awan asked the court to pass an order restraining the KTI from going on strike.

Justice Gulzar Ahmed and Justice Imam Bux Baloch put transporters, government representatives and the Sindh advocate-general on notice for Friday.

Published in The Express Tribune, March 3rd, 2011.]]>
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			<title>PML-N reorganisation: ‘PPP following Musharraf’s policies’</title>
			<link>https://tribune.com.pk/story/126208/pml-n-reorganisation-%e2%80%98ppp-following-musharraf%e2%80%99s-policies%e2%80%99</link>
			<comments>https://tribune.com.pk/story/126208/pml-n-reorganisation-%e2%80%98ppp-following-musharraf%e2%80%99s-policies%e2%80%99#comments</comments>
			<pubDate>Wed, 02 Mar 11 02:46:25 +0500</pubDate>
			<dc:creator>
				<![CDATA[abdul.manan]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=126208</guid>
			<description>
				<![CDATA[Nawaz says another long march could be launched against the petroleum price hike.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan Muslim League-Nawaz (PML-N)’s Chief Mian Nawaz Sharif in his meeting with party workers hailing from Karachi division avoided making bellicose remarks against the MQM but spoke out much more forcefully against the alleged bogus cases being instituted against innocent Baloch nationals. He said that this should stop immediately.

This was the last in a series of eight consultative meetings that Nawaz Sharif held with party workers from across Pakistan including Gilgit-Balistan but not Azad Kashmir.

The most ominous signal sent out by the chief of the PML-N was the hint of another long march to protest the policies of the PPP-led government. While he did not give any date for the march, he demanded the government immediately withdraw the latest increase in petroleum prices.

The last meeting included workers from Karachi division, Larkana, Kashmore, Shikarpur, Quetta, Gwadar, Turbet, Kalat, Dera Bugti, Punjgore, Lasbella and Qila Saif at Model Town.

He urged the party workers from Karachi to co-exist with the party workers of MQM. But he went on to say that the PML-N would continue to demand a judicial inquiry into the incident of May 12 2007.

Criticising the provincial government of Sindh for failing to ensure peace in Karachi, he said that arrested target killers should be punished. He called for national unity.

He said that Sindh was deliberately kept backward but his party would eliminate the miseries of Sindhi people. He said that PPP never fulfilled its written contract with PML-N and that it was still following the policies of Musharraf.

Speaking about Balochistan he said that innocent Baloch have been labelled traitors and cases framed against them. He said that PML-N believes that Baloch have the first right on their resources. He said that PML-N would address all grievances of the Baloch.

Former Sindh Chief Minister Syed Ghous Ali Shah also spoke and condemned the resolution passed by the Sindh Assembly against the Punjab Government and termed it an effort to divert attention from the serious problems being faced by the people of Sindh.

Published in The Express Tribune, March 2nd, 2011.]]>
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			<title>Petrol prices: ‘President promises to review the decision’</title>
			<link>https://tribune.com.pk/story/126203/petrol-prices-%e2%80%98president-promises-to-review-the-decision%e2%80%99</link>
			<comments>https://tribune.com.pk/story/126203/petrol-prices-%e2%80%98president-promises-to-review-the-decision%e2%80%99#comments</comments>
			<pubDate>Wed, 02 Mar 11 02:27:19 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=126203</guid>
			<description>
				<![CDATA[President Zardari tells Altaf he will meet MQM representatives to address their concerns.]]>
			</description>
			<content:encoded>
				<![CDATA[Amid growing criticism from the opposition and some allied parties on Monday’s increase in the prices of petroleum products, President Asif Ali Zardari is said to have assured the chief of a key coalition partner that the government will review the decision.

Speaking to Altaf Hussain, chief of the Muttahida Qaumi Movement (MQM) over phone, President Zardari said that he and Finance Minister Dr Abdul Hafeez Sheikh will meet the MQM representatives on Wednesday (today) to address the party’s concerns.

According to media release issued from London, Altaf informed the president about the unease created by the government decision to increase the prices of petroleum products by close to 10 per cent.

On Monday, the MQM coordination committee rejected the increase and asked the government to review its decision within three days.

Altaf said that the raise in the prices of petroleum products would have a domino effect as it would lead to a sharp increase in the prices of daily-use items. This, he said, would add to the problems of the common man.

Published in The Express Tribune, March 2nd, 2011.]]>
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			<title>Fuel price hike: Political pressure piles up on PPP</title>
			<link>https://tribune.com.pk/story/125688/transport-alliance-calls-for-strike-against-fuel-price-hike</link>
			<comments>https://tribune.com.pk/story/125688/transport-alliance-calls-for-strike-against-fuel-price-hike#comments</comments>
			<pubDate>Wed, 02 Mar 11 02:00:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[zia.khan]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125688</guid>
			<description>
				<![CDATA[PML-N, MQM, PML-Q walk out from National Assembly.]]>
			</description>
			<content:encoded>
				<![CDATA[Mere hours following an increase in petrol and diesel prices, the government has, as expected, come under extreme pressure from political forces for the move.

Political parties have warned the government of ‘chaos on the streets’ if it does not immediately withdraw an over nine per cent increase in petroleum prices – a move that the government was forced to implement given increasing oil prices in the international market, and the increasing burden that subsiding the commodity was putting on the already beleaguered economy.

On Tuesday, the government had to deal with walkouts from the National Assembly by both the opposition – the Pakistan Muslim League-Nawaz (PML-N) and PML-Q, – as well as its key ally – the Muttahida Qaumi Movement (MQM).

The MQM, a party whose support is pivotal for the Pakistan Peoples Party (PPP)-led government to maintain a simple majority in the house, has already given the government a three-day ‘deadline’ to reverse the price increase, failing which it would take “appropriate action”.

However, none of these groups appeared to offer any concrete alternative to the government to balance economic compulsions and social considerations when adjusting petroleum prices according to skyrocketing international rates.

Political pressure had already forced the government to take back a fuel price hike once before at the start of the year – a move that delivered a big hit to the country’s economy.

With an overwhelming majority of Pakistanis not paying taxes, indirect taxation and revenues collected on petroleum products are the biggest earning avenues for the state.

The political parties opposing price increase have recently frustrated several government attempts to reform the country’s taxation system, which, among other things, has resulted in the suspension  of a bailout package from the International Monetary Fund.

Before walking out of the National Assembly on Tuesday, political parties delivered dramatic speeches castigating the government for the price hike.

“It is tantamount to a suicide attack on the people of Pakistan…the government is following the dictates of the IMF instead of the parliament,” Khawaja Saad Rafiq of the PML-N said.

He termed the increase an unjust and unfair move, urging the government to immediately take it back.

MQM’s Haider Abbas Rizvi claimed that a parliamentary committee formed to guide the government on this matter was not consulted ahead of the decision on Sunday night.

Rizvi added, “We give three days to the government to withdraw the recent increase in petroleum prices.”

Sheikh Waqas Akram of the PML-Q also endorsed the views of his fellow legislators and advised the government to avoid taking such decisions.

Sindh Assembly

The MQM and opposition parties on Tuesday also staged a token walkout from the Sindh Assembly in protest against hike in fuel prices.

As the session started, the members of opposition including Pakistan Muslim League-Functional (PML-F) and PML-Q stood up and said that recent price hike in petroleum products has created a law and order situation in the province. The members of MQM and PPP assured them that they would also table joint resolution on the issue and requested them to end the protest.  But they continued their protest and staged walkout for a few minutes. Later Sindh Education Minister Pir Mazharul Haq brought them back to the session.

A similar situation was witnessed when MQM wanted to bring a resolution in the house on the issue. They were told by PPP members to wait until their parliamentary leader comes and the house should pass a resolution against attempts of Pakistan Muslim League-Nawaz  of introducing horse-trading in the Punjab Assembly. “We are bringing a joint resolution...we will take it up later on,” they said.

But as the resolution against PML-N was passed the MQM members got permission from the chair and moved their resolution, which read: “The increase in the prices of petroleum products by 9.9% will raise the consumer’s prices including bus and train fares and have angered the common man. It is, therefore, proposed that government of Sindh recommend to the federal government to withdraw the increase in PoL prices.”  But Pir Mazhar, Shazia Marri and Ayaz Soomro of PPP were of the view that the prime minister had already taken back the petrol price increase by giving subsidy of Rs15 billion after protest by different quarters.  But since the prices of fuel have soared in international market, it would be difficult for the government to give further subsidy.

Pir Mazhar responding to MQM members said “We request you to give us time, so that we can also consult with our leadership on the issue. We assure you that your resolution will be passed tomorrow (Wednesday)” he said.

Sardar Ahmed of MQM and other members of the party agreed, but Dr Sagheer Ahmed, said that before the resolution gets passed they will stage a walkout in protest against it, which the party did.

The speaker adjourned the session till Friday.

Published in The Express Tribune, March 2nd, 2011.]]>
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			<title>CNG rates fluctuate</title>
			<link>https://tribune.com.pk/story/125605/cng-rates-fluctuate</link>
			<comments>https://tribune.com.pk/story/125605/cng-rates-fluctuate#comments</comments>
			<pubDate>Tue, 01 Mar 11 02:53:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125605</guid>
			<description>
				<![CDATA[Ogra revises rates for CNG by dividing country into four blocks, prices expected to go up in some areas.]]>
			</description>
			<content:encoded>
				<![CDATA[Ogra also revised the rates for compressed natural gas (CNG) by dividing the country into four blocks based on gross calorific value. As a result, prices are expected to go up by Rs1.36 to Rs 58.68 per kilogram at the CNG stations of Attock, Gujar Khan, Islamabad, Karak, Banu, Tank, Laki Marwat and Dera Ismail Khan.

For the remaining districts of Khyber-Pakhtunkhwa the CNG prices have marginally reduced by Rs0.30 to Rs57.00 per kg. For Sindh there are two different rates from March 1. In Upper Sindh the new rate will be Rs 53.45 per kg. For districts of Nawabshah, Karachi, Khairpur, Tandu Adam, Sanghar, Pakistan Steel Mills area and for Balochistan the new CNG per kg rates will be Rs 55.22 per kg.

Published in The Express Tribune, March 1st, 2011.]]>
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			<title>Fuel subsidy pressure: Govt finally caves in</title>
			<link>https://tribune.com.pk/story/125618/fuel-subsidy-pressure-govt-finally-caves-in</link>
			<comments>https://tribune.com.pk/story/125618/fuel-subsidy-pressure-govt-finally-caves-in#comments</comments>
			<pubDate>Tue, 01 Mar 11 02:06:13 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125618</guid>
			<description>
				<![CDATA[Key coalition partner MQM rejects price increase.]]>
			</description>
			<content:encoded>
				<![CDATA[Despite increasing petrol prices by an average of 9.9 per cent, the government will continue to subsidise oil consumption in the country at a cost of at least Rs5 billion a month.

The Oil and Gas Regulatory Authority (Ogra) issued a notice on Monday, raising petrol prices by Rs7.23 per litre, or 9.9 per cent, to Rs80.19 per litre. Diesel prices went up by 9.83 per cent, or Rs7.70 per litre, to Rs86.03. The new prices are due to go into effect on March 1 (today).

Yet, the government, under severe political pressure from its coalition allies, did not pass on the full effect of the rise in international oil prices to domestic consumers. As a result, the government will continue to subsidise oil consumption, which is expected to cost the national exchequer Rs5 billion for the month of March alone, according to Ogra officials.

“Crude oil prices are continuously rising due to political turmoil in the Middle East and the rise is very steep,” said Jawad Naseem, the official spokesman of Ogra.

Brent crude oil has risen by over 16 per cent in trading on the London-based Intercontinental Exchange over the last month, closing at over $111 per barrel on Friday.

Jawad, who is also the Executive Director Finance Ogra, said that since November the prices of petroleum products increased between 23 per cent and 25 per cent, but the government has only passed on 10 per cent to the end consumers largely due to political pressure.

Over the past three months, the government has refrained from increasing petrol prices at considerable expense. The ministry of finance estimates that keeping prices stable since November has cost the government Rs13 billion. The current increase will save the government Rs11 billion in subsidies for the month of March, but it is far less than what the finance ministry wanted.

In a meeting with President Asif Ali Zardari, Finance Minister Abdul Hafeez Sheikh had proposed a 20 per cent price increase as the ministry’s preferred option, which the president ruled out as unacceptable.

The decision is expected to provide some ammunition to the country’s financial managers who are due to meet a staff-level delegation of the International Monetary Fund this month to show their commitment to implementing serious reforms.

The IMF provided an $11.3 billion bailout package to the government in November 2008 to rescue the country from a growing fiscal crisis but placed conditions on its aid, including fiscal reform and a deregulation of energy prices as well as an end to all subsidies. The government has faced resistance from the opposition as well as its own coalition partners in adopting the IMF’s proposals, as a result of which the IMF has decided to suspend the remaining tranches of the bailout, worth $3.3 billion.

MQM rejects increase in petrol price


The Muttahida Qaumi Movement has condemned the increase in the prices of petroleum products by the federal government, describing it as “a totally wrong decision”.

The MQM Coordination Committee held a joint emergency meeting in Karachi and London to review the government decision and the uneasiness it has caused among the people. It warned that if the government did not withdraw the increase within three days, it will announce its future strategy.

The coordination committee said the increase in fuel prices will send prices of the daily-use items soaring. The MQM urged the federal government to withdraw the increase. Instead of overburdening the common people, the government should bear it and levy taxes on incomes of landlords.

Published in The Express Tribune, March 1st, 2011.]]>
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			<title>Petrol pump operators end ‘strike’</title>
			<link>https://tribune.com.pk/story/125497/petrol-pump-operators-end-%e2%80%98strike%e2%80%99</link>
			<comments>https://tribune.com.pk/story/125497/petrol-pump-operators-end-%e2%80%98strike%e2%80%99#comments</comments>
			<pubDate>Mon, 28 Feb 11 20:09:57 +0500</pubDate>
			<dc:creator>
				<![CDATA[mobin.nasir]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125497</guid>
			<description>
				<![CDATA[Dealers demand increase in profit margin.]]>
			</description>
			<content:encoded>
				<![CDATA[Petrol pumps remained closed on Monday morning as the Pakistan Petroleum Dealers Association (PPDA) called a one-day strike against the government’s perceived unwillingness to increase margins earned by dealers on fuel sales.

However, the pumps reopened in afternoon after intervention of the Muttahida Qaumi Movement (MQM). A three-member delegation of MQM met with representatives of PPDA at the association’s office and assured them that their demands would be conveyed to the government.

“The government must immediately increase the commission margin collected by petroleum dealers by 50 paisa to Rs2 per litre on sales of petrol as well as diesel,” said PPDA managing committee member Mohammad Siddiq.

He explained that the formula for calculating margins charged by dealers was revised from four per cent to two per cent of retail price in 2004. “Then in 2008, it was further reduced by being fixed at Rs2 per litre and three months ago, the government squeezed us again by limiting the margin on petrol and diesel at just Rs1.5 per litre,” said Siddiq.

Hundreds of motorists and commuters were left stranded on Monday morning, as petrol stations across the city were shut down. Sporadic protests broke out in various areas, including Shahra-e-Faisal, Gulshan and Nazimabad, as citizens were agitated by the unavailability of petrol. Incidents of aerial firing and unrest prompted action from law enforcers and police and Rangers had to use batons and tear gas shells to disperse the protesters. The unrest drove MQM lawmakers to PPDA offices who successfully negotiated an end to the strike.

Earlier, while the strike was still on, petrol pumps owned and operated by Pakistan State Oil remained open. However, large queues of vehicles were formed at each of the seven locations, all of which are situated in the southern locales of Clifton and Defence.

Speaking to The Express Tribune, Sagheer Ahmed, part of the three-member delegation, said, “We conveyed to petrol pump operators that the public was being made to suffer and law and order risks grow in the city as a result of the strike and the reactions it sparked among the public.”

He explained that the delegates pressed the petroleum dealers to not cause hardships to people to make their demands be heard. He said the delegates have given a patient ear to reservations of petrol dealers and have assured them that their concerns will be raised at the appropriate forum.

PPDA President Abdul Sami Khan said that the strike had been called off on assurances by the director general for petroleum that the issue would be resolved soon.

Hinting at a country-wide shutdown of petrol pumps, Khan said, “We have given the government a timeframe of one month to address our demands, however, if we are forced to go on strike again, it will not be limited to just Karachi.”

Published in The Express Tribune, March 1st, 2011.]]>
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			<title>Protesters summon energy to fight back pump chaos</title>
			<link>https://tribune.com.pk/story/125417/protesters-summon-energy-to-fight-back-pump-chaos</link>
			<comments>https://tribune.com.pk/story/125417/protesters-summon-energy-to-fight-back-pump-chaos#comments</comments>
			<pubDate>Mon, 28 Feb 11 19:09:46 +0500</pubDate>
			<dc:creator>
				<![CDATA[faraz.khan]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125417</guid>
			<description>
				<![CDATA[Tear gas shelling and aerial firing at Gulistan-e-Jauhar.]]>
			</description>
			<content:encoded>
				<![CDATA[Unable to reach his office, Farhan joined a crowd of residents at Jauhar Morr protesting the decision to close petrol pumps on Monday morning.

“It is not fair. We are buyers not beggars,” he said. When he was refused service at a petrol pump in the morning, Farhan believed it was his right to protest.

He was not the only one in the city suffering because the Petroleum Dealers Association (PDA) had called a strike against dropping profits. Students, the sick and working people found themselves grounded at the start of the week. Others stayed at home because of the violence that broke out. There were hardly any buses on the roads.

Hashim Raza, a resident of Gulistan-e-Jauhar, could not pick his children from school. “I am hoping they will open the pump,” he said as he too joined the protest.

Most of the people complained that the pumps were closed because of the expected rise in petroleum prices. “The owners just want to sell petrol at a high price and that is why they have shut down,” said one man.

The series of protests started on MA Jinnah Road around 8:30 am and quickly spread to Gulistan-e-Jauhar, Sharae Faisal, Nazimabad, Gulshan-e-Iqbal, Abul Hassan Ispahani Road, Aisha Manzil, Gulberg, Falak Naz Arcade near the airport and other neighbourhoods.

Around noon, the police and Rangers reached Jauhar Morr, where the largest number of residents had gathered. But the crowd was so angry that they had to fire in the air to frighten them and use tear gas. In response, the protesters attacked petrol pumps and broke windows.

They claimed that they did not want to react violently but the attitude of the petrol pump security guards and the law enforcers left them with no choice. “We were staging a peaceful sit-in,” one of the men said. “What is the government doing with the atomic bomb? Why don’t they use it on us,” another one remarked angrily.

“Today’s protests proved that we are united and will continue to be if this continues,” said a protester Syed Abbas.

Several people were injured when the law enforcers baton-charged them. Many of them, including a former MPA from Jamaat-e-Islami, Younus Barai, were detained from Gulistan-e-Jauhar but were released shortly.

The stand-off lasted nearly eight hours, after which political forces moved in to persuade the petrol dealers to end their strike. A delegation of the Muttahida Qaumi Movement, led by Health Minister Dr Sagheer Ahmed, met PDA chairman Abdul Sami and others. Dr Ahmed assured them that their problems would be addressed and a resolution was also passed during the Sindh Assembly. Although the PDA ended the strike, most of the petrol pumps stayed closed. A heavy contingent of Rangers and the police were, however, asked to guard all stations.

Published in The Express Tribune, March 1st, 2011.]]>
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			<title>Petrol jumps to Rs80.19 per litre</title>
			<link>https://tribune.com.pk/story/125005/petroleum-dealers-go-on-strike-in-karachi</link>
			<comments>https://tribune.com.pk/story/125005/petroleum-dealers-go-on-strike-in-karachi#comments</comments>
			<pubDate>Mon, 28 Feb 11 18:25:58 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Sindh]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125005</guid>
			<description>
				<![CDATA[OGRA announces Rs7.23 increase in petrol price.]]>
			</description>
			<content:encoded>
				<![CDATA[The government on Monday increased the petroleum products prices up to 9.9 per cent for the first time in three months.

According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), petrol prices have been increased by Rs7.23 per litre or 9.9 per cent with effect from March 1, taking the new rate to Rs80.19 per litre. The government increased diesel prices by 9.83 per cent or Rs7.70 per litre.  The new per litre diesel price would be Rs 86.03.

Earlier, the Pakistan Petroleum Dealers Association suspended the supply of petroleum products and announced a strike in Karachi due to a proposed increase in petroleum prices. The association warned that the strike may soon spill over into other parts of the country if its demands are not met.

Resultantly, a large number of people came out on the streets on Rashid Minhas road, in Nazimabad and Shahrah-e-Faisal road in Karachi following the announcement of a strike by petroleum dealers. The protesters clashed with the police and rangers personnel who tried to take control of the situation.

The demonstrators blamed the pump owners for halting supplies fearing a possible increase in the petrol prices today.

Long queues of vehicles were seen in the city outside the few stations still running.

The Pakistan petroleum dealers’ association later decided to call off their token strike.

OGRA authorities said an increase in the prices is necessary according to levy collected two months ago, whereas six to seven per cent increase should be made in accordance to the levy collected in current situation.

Sources informed that the government is providing a subsidy of Rs15 billion on petroleum products and it will have to give an additional subsidy of Rs10 billion if current prices are not increased.

CNG prices revised

Ogra has revised its CNG prices keeping in view the Gross Calorific Value (GCV). The new prices will become effective from March 1.

Four different prices will be followed in the country's four provinces. CNG prices will rise in Islamabad, Rawalpindi and in areas from Attock to Jhelum.  In Khyber Pakhtunkhwa, CNG will be available at Rs57 per kilogramme.

In inner Sindh and Balochistan, CNG will be availabe at Rs55.2 per kg. In Punjab and adjoining areas, CNG will now be available at Rs53.45 per kg.

According to All Pakistan CNG Association, OGRA's revised prices will raise gas prices in 2,600 CNG stations and reduce them in 500 gas stations across the country.]]>
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			<title>Petrol retailers’ strike</title>
			<link>https://tribune.com.pk/story/125102/petrol-retailers%e2%80%99-strike</link>
			<comments>https://tribune.com.pk/story/125102/petrol-retailers%e2%80%99-strike#comments</comments>
			<pubDate>Mon, 28 Feb 11 17:21:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=125102</guid>
			<description>
				<![CDATA[At a broader level, the events in Karachi highlight the dilemma of the government in regulating oil prices.]]>
			</description>
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				<![CDATA[The decision by retail petroleum dealers in Karachi to go on strike only highlights the difficulty faced by the federal government in raising domestic oil prices in line with international rates. The government was expected to raise petrol prices (a decision that was not taken at the time this was written, but which may come into effect by the time this is published) but not by the 16 per cent increase that they have risen in the world market. However, this came under intense criticism from petroleum dealers and retailers who decided to go on strike for a day in the country’s largest city. They, however, seem to have underestimated public anger and resentment, since for much of the day several incidents happened in the city at petrol pumps with irate motorists and motorcyclists demanding that they be given fuel. The anger may have been fuelled further by the deduction, which should be quite easy to make, that the petrol pumps had struck a day before the planned price increase deliberately, so as to profiteer on the stocks of petrol they had in hand. This means that if an increase in the price of oil is to occur, the government should take pains to avoid mentioning it in the media till it actually happens.

At a broader level, the events in Karachi highlight the dilemma of the government in regulating oil prices. While increasing them in line with global rises has a highly visible inflationary impact, not passing on the increase is something that the government can no longer afford to do, since its budget deficit can no longer support such subsidies. In fact, such a large fiscal deficit has substantial inflationary pressures of its own. Pakistan is not an oil-rich state that can afford to give lavish subsidies on petroleum to its citizens. In fact, even Iran, a country with some of the largest hydrocarbon reserves in the world, has eliminated its subsidies on oil. It is time for Pakistan to finally confront the hard truth and do the same. This will be accompanied, one hopes, with greater efforts for conservation and finding energy alternatives.

Published in The Express Tribune, March  1st, 2011.]]>
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			<title>Petrol prices set to increase 10-13%: Sources</title>
			<link>https://tribune.com.pk/story/124730/petrol-prices-set-to-increase-10-13-sources</link>
			<comments>https://tribune.com.pk/story/124730/petrol-prices-set-to-increase-10-13-sources#comments</comments>
			<pubDate>Sun, 27 Feb 11 15:30:17 +0500</pubDate>
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				<![CDATA[express]]>
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			<category><![CDATA[Business]]></category>
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				<![CDATA[Finance ministry has endorsed recommendations made by Ogra, decision to be taken tomorrow.]]>
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				<![CDATA[Oil and Gas Regulatory Authority (Ogra) has advised 10 to 13 per cent increase in prices of  petroleum products. According to sources, the finance ministry has endorsed recommendations made by Ogra, and the decision will be announced tomorrow. 

Sources say that government is providing a subsidy of 15 billion rupees on petroleum products and it will have to give an additional subsidy of 10 billion rupees, if current prices are not increased.

Ogra authorities say an increase in prices is necessary based on levy collected two months ago, while a six to seven per cent increase should be made in accordance to  the levy collected in the current situation.

A decision regarding petroleum prices is expected tomorrow, after Prime Minister Yousaf Raza Gilani's approval.]]>
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