ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) has approved a 58-paisa per unit cut in power tariff of eight power distribution companies under the fuel price variation adjustment formula.
The regulatory authority said it had sent a summary to the ministry of water and power for adjustment in tariffs of eight distribution companies, which had sought a 48-paisa cut in power tariff.
The decision will, however, not be implemented by the Karachi Electric Supply Company (KESC) as the hearing on its petition will be held on February 1 this year.
Nepra said that people had been provided relief amounting to Rs2.67 over the past five months. The reduction in power tariff for four months (August-November) has already been passed onto consumers and the relief for December will be given in the next electricity bill, the spokesperson said.
Meanwhile a government committee is learnt to have refused to allow any increase in the prices of petroleum products. On Thursday, the parliamentary committee to review the formula for fixing of prices of petroleum products rejected an application filed by the ministry of petroleum to increase petrol price by Rs9.45 per litre and diesel by Rs9.2.
The increase, the ministry said, was necessary in view of the increase of petroleum prices in international market over the past three months.
The ministry said that an increase in price of at least Rs3 in petrol and Rs2.7 in diesel was necessary, contending that if this was not done, the government would be faced with an aggravated fiscal deficit. However, the parliamentary committee also rejected this assertion.
The next meeting of the committee will be held on Monday, when a final decision is expected in this regard. The committee will also prepare recommendations for chalking out a formula for fixing fuel prices.
According to the sources, the federal secretary for petroleum and natural resources had told the meeting that the government would incur a cumulative loss of Rs12 billion because there had been no price increase in petroleum products for the past three months.
The parliamentary committee said that the prices should not be increased just for the sake of recovering the lost earnings. This amount, the members agreed, could be raised by various austerity measures, including a reduction in government expenses.
The committee also opposed a duty imposed on petroleum products called the petroleum levy and said that there was no need for additional levies when general sales tax was already imposed on the petroleum products. The committee recommended that the collection of petroleum levy should be stopped.
Published in The Express Tribune, January 28th, 2011.
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