Govt to revise petroleum pricing policy
KARACHI:
Petroleum Minister Syed Naveed Qamar has said that the government will revise the policy relating to the pricing of petroleum products specifically to prevent misuse of Inland Freight Equalization Margin (IFEM).
He said that with the removal of this margin and its pool, the benefit of Rs16 billion will be transferred to petroleum products consumers in Karachi instead of a few people.
He was speaking at the luncheon of Pakistan Petroleum Dealers Association (PPDA) in his honour on Monday.
He said a summary in this regard will be submitted before the Economic Coordination Committee (ECC) of the Cabinet on Tuesday (June8) for approval.
Qamar said that cartage contractors get IFEM from freight for the supply of petroleum product for northern areas (Chitral, Hunza), but sell it in Karachi instead.
The removal of the IFEM will save Rs 16 billion which will be passed on to the local consumers and they are likely to get a reduction of up to Rs 2 on each litre, he added.
He said the government wanted to deregulate the prices of petroleum prices except diesel and kerosene oil so that they are available to consumers at uniform price all over the country.
“For the time being we are not deregulating diesel price despite the fact that it is a big product”, he added.
Published in the Express Tribune, June 8th, 2010.
Petroleum Minister Syed Naveed Qamar has said that the government will revise the policy relating to the pricing of petroleum products specifically to prevent misuse of Inland Freight Equalization Margin (IFEM).
He said that with the removal of this margin and its pool, the benefit of Rs16 billion will be transferred to petroleum products consumers in Karachi instead of a few people.
He was speaking at the luncheon of Pakistan Petroleum Dealers Association (PPDA) in his honour on Monday.
He said a summary in this regard will be submitted before the Economic Coordination Committee (ECC) of the Cabinet on Tuesday (June8) for approval.
Qamar said that cartage contractors get IFEM from freight for the supply of petroleum product for northern areas (Chitral, Hunza), but sell it in Karachi instead.
The removal of the IFEM will save Rs 16 billion which will be passed on to the local consumers and they are likely to get a reduction of up to Rs 2 on each litre, he added.
He said the government wanted to deregulate the prices of petroleum prices except diesel and kerosene oil so that they are available to consumers at uniform price all over the country.
“For the time being we are not deregulating diesel price despite the fact that it is a big product”, he added.
Published in the Express Tribune, June 8th, 2010.