No more room for government subsidy on petroleum products: Dr Asim Hussain
Replying to a point of order raised by MQM lawmaker Haider Abbas Rizvi in the Joint Sitting over the recent hike and then a nominal decrease in petroleum prices, the minister said that the government was already providing subsidies on electricity, gas and fertiliser, hence it was too difficult for it to give out any more subsidies.
He said that being an independent regulator, the Oil and Gas Regulatory Authority (OGRA) fixes prices of petroleum products rather than petroleum ministry.
Detailing the factors which determine price of petroleum products, the minister said that prices of petroleum products included, internal freight, oil marketing companies fixed margin, dealer margin, petroleum levy and general sales tax (GST). He said that after the NFC award, the provinces and federation have 70 and 30 per cent share in GST respectively and the provinces should also come forward to give more relief to the masses.
He said that the whole world was facing the brunt of inflation adding that prices of petroleum products were still higher in India, Afghanistan and Bangladesh than Pakistan.
He welcomed MQM’s suggestion to constitute a committee for deciding prices of petroleum products.
COMMENTS (19)
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Finish all the perks and benefits of Ministers and Senior Government officers. Problem solved.
@ Haris Chowdhry , Expertise in the relevant case is the utmost requirement .Dr.Asim is just a Doctor of Medicine ,MBBS .Mind you .They are good in prescribing AntiBiotics as this is what they are supposed to do .Fair enough ???
Now , if an MBBS is placed to chalk out a strategy on the "advice " of the technocrats ..... Comeon .....!!!!! how could he differentiate whether the Technocrat has arrived at the POL price on strategy based on the Law of diminshing return or on Standard Costing .
To him out of "Foranum Magnum " is always a blank exprssion .lolzzzzzzzzzzz.
@Parvez: the real problem is that he is not telling the truth.
This idiot minister doesnt know that India has much advanced and better transportation infrastructure than Pakistan. Pakistan's 90% transportation need is met by roads therefore, any hike in fuel prices directly contribute towards increase in price of essential commodities.
The price of gasoline is like the price of gold and is the same all over the world. No govt had control over its price. Even in the US the price of gasoline has been well over a dollar per litre and close to 1.5. Pakistan should take money out of defense waste and other non productive areas and give subsidy to the urban vocal car owners.
No more room for government subsidy on petroleum products: Hahahahahaha Bloody Nonsense. U are right @sohiab
But there is lot of cushion to pay for 60+ ministries.
@ Mohammad Ali Siddiqui:
No minister is meant to be an expert in their portfolio and that is how it is done in most countries. The minister/s rely on the advice of their technocrats and bureaucrats in taking decisions. Having a medicine degree is at least better than having no degrees as is the case with 90% of the existing ministers in this government or any other previous gov in leading a ministerial portfolio.
Your thoughts are too lofty and too idealogical and without any solid base or argument. Majority of the Indian or Chinese or for that matter European ministers come from varying backgrounds and are meant to implement changes with an objective viewpoint and not with a PhD in their relevant portfolios.
Haris
We cannot believe a word that Governments say in regard to Petroleum pricing. Many countries extract their own petroleum from under the ground for pennies a litre, but they usually give contracts to international corporations and allow them to charge world parity pricing. The upshot is that instead of charging 25 cents per litre to make a fair profit, they are allowed to charge, on average, one dollar fifty cents a litre. Of course, the various Governments usually get a substantial take out of the $1.50. Better get used to be being fleeced folks. If private corporations/Governments do not squeeze you one way they will find another.
@Its (still) Econonmy Stupid: Seriously dude you should not speak when your high. First you call him a honest politician and than went on to conclude that AQ Khan is responsible for the high oil prices. Genius might as well also tell us if big foot can drive a car or not. Useless
Maybe you should make an appeal to your Muslim brothers who dominate OPEC?
PAK is no different than any other developing nation. It tries to protect its citizens from the reality of the world economy only to find out that at some point it can no longer afford to do. When that happens it causes great social unrest and outrage. In time people will adjust to a lower standard of living and learn to live and make choices that are best for themselves. Hopefully the government will either stop borrowing money it does not that it used to support this or to use the money in a different way that will grow the economy and increase the standard of living for all.
My claim it is the goverment that is at fault but the truth is the government has been reallocating resources from one group to another and at the end of the day the only people who benifit are the producers as it should be.
70% of the petroleum tax goes to provinces. Our Khadim-e-Alla can say he doesnt want his share and in his province reduce the taxes by 70%, which will mean substantial subsidy from the Punjab Govt. But he will never do it.
no room for subsidy but a lot of room for corruption.
It is refreshing for a honest to goodness statement from a politician that government can not afford subsidy on petrol prices. Pakistani's should pay world prices for petrol as Dr A Q Khan is the father of high petrol prices in the world afterall he is responsible for the Iran-US confrontration.
Even if your telling the truth, no one believes you and that is the problem.
Dr. Asim Hussain:
You does not know what is petroleum and what are is products?
You are simply a Medical Doctor and owner/Chancellor of Ziauddin Hospitals in Karachi.
I would suggest you to request the Prime Minister that you should be made Health Minister rather than being a Petroleum Minister.
Pakistan must be having people who are experts in fixing the petroleum prices, keeping in view of the financial ability of an ordinary Pakistani.
what subsidy? this corrupt govt is already charging more than 30% taxes, cut this damn percentage and people will be able to live