Ministry shrugs off responsibility for fixing petroleum price
Says prices are adjusted on basis of a formula approved by ECC ۔
ISLAMABAD:
Parliamentary Secretary for Ministry for Petroleum and Natural Resources Shehnaz Shaikh on Wednesday said that the ministry is not involved in the weekly fluctuation of prices of petroleum products as proposed by the Oil and Gas Regulatory Authority (Ogra).
Responding to various questions in the Cabinet, she said that the prices are adjusted upward or downwards on basis of the formula approved by the Economic Coordination Committee (ECC). The formula uses international Arab Gulf market prices of petroleum products as published in the Platts Oilgram price report. She said that Ogra forwards the proposal to fix petroleum prices to the ministry which forwards the proposal to the Ministry of Finance which issues the approval. She said that the prime minister, federal cabinet and ECC also play a role in price fixation.
“Ogra and oil marketing companies/refineries are allowed to revise the prices.” She said that the present mechanism for price fixation was fairly simple.
Shaikh said that it was a fact that a joint working group has been established for the Pak-Iran gas pipeline project and the composition of the group included Ministry of Petroleum and Natural Resources, Ministry of Finance, Ministry of Law, Justice and Human Rights, Ministry of Foreign Affairs, State Bank of Pakistan, Inter State Gas Systems.
Published in The Express Tribune, September 13th, 2012.
Parliamentary Secretary for Ministry for Petroleum and Natural Resources Shehnaz Shaikh on Wednesday said that the ministry is not involved in the weekly fluctuation of prices of petroleum products as proposed by the Oil and Gas Regulatory Authority (Ogra).
Responding to various questions in the Cabinet, she said that the prices are adjusted upward or downwards on basis of the formula approved by the Economic Coordination Committee (ECC). The formula uses international Arab Gulf market prices of petroleum products as published in the Platts Oilgram price report. She said that Ogra forwards the proposal to fix petroleum prices to the ministry which forwards the proposal to the Ministry of Finance which issues the approval. She said that the prime minister, federal cabinet and ECC also play a role in price fixation.
“Ogra and oil marketing companies/refineries are allowed to revise the prices.” She said that the present mechanism for price fixation was fairly simple.
Shaikh said that it was a fact that a joint working group has been established for the Pak-Iran gas pipeline project and the composition of the group included Ministry of Petroleum and Natural Resources, Ministry of Finance, Ministry of Law, Justice and Human Rights, Ministry of Foreign Affairs, State Bank of Pakistan, Inter State Gas Systems.
Published in The Express Tribune, September 13th, 2012.