Govt may give in to pressure on petrol prices

Federal govt, in principle, agrees to lower petroleum prices by between Rs3 and Rs4 per litre.

ISLAMABAD:

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 4^th,  2011.