Rs35b subsidy paid to consumers: Shaikh

Minister says OGRA determines oil prices without government involvement.

ISLAMABAD:

Federal Finance Minister Abdul Hafeez Shaikh said on Friday that the government has so far given a subsidy of Rs35 billion by not significantly increasing prices of petroleum products in the past few months.

Talking to reporters outside the Parliament House, he said the Oil and Gas Regulatory Authority (Ogra) is an independent organisation, which decides about prices of petroleum products, without any interference from the government.

Shaikh said the government had not slightly increased oil prices in the past few months, despite a steep rise in world prices of petroleum products, adding that Pakistan imported 85 per cent of the required oil.

He emphasised that the global price of diesel had increased by 40 per cent and petrol went up by 35 per cent, while the local increase in diesel price was 18 per cent and in petrol it was 15 per cent.

Shaikh said political parties should understand the difficulties faced by the government and the media should inform the public about the reality behind the rise in petroleum product prices.

The government is widening the tax net by targeting 700,000 eligible taxpayers and FBR has already issued notices to these people, he added.

Published in The Express Tribune, April 2^nd,  2011.