ISLAMABAD: The people will again be deprived of the relief in prices of petroleum products, as the government is not likely to reduce the POL prices at retail level in its announcement to be unveiled on January 31, a senior official told The News.
Oil prices have tumbled by about 200 percent during last eight moths in the international market while Pakistanis were passed on just 40 percent relief in prices.
The government has not only flouted its own laid down mechanism under which the domestic prices are driven by price in the international market, but also fleeced the masses by increasing the petroleum development levy (PDL).
According to the official, Ministry of Finance, Ministry of Petroleum and Natural Resources and FBR are unanimous to oppose any reduction of POL prices as the crude oil prices have jumped up to $41.86 per barrel from $39 per barrel.
“This will decrease the revenue by Rs5 billion to Rs12 billion from Rs17 billion per month and the government has no other option to generate its revenue and meet the IMF target.”
The official said that the POL prices calculations have been formed in the shape of recommendations later to be submitted to Chief Executive of the country for final decision.
As per the said calculation formula the government earned Rs8.5 billion revenue in one fortnight with the help of hike in PDL. This earning will decline by Rs2.5 billion as the crude oil price has swelled to $41.86 billion.
The government collected Rs17 billion in one month, which will drop to Rs12 billion meaning that the government would suffer a loss of Rs5 billion. In this scenario, the government will not decline the POL prices.
India has twice cut retail fuel rates in less than two months after crude oil prices extended their slump amid a global recession. In India petrol price has been lowered by Rs5 a litre and diesel by Rs2 rupees a litre.
The government should raise the revenue from other resources. Revenue collection through POL products is much easier, which is why the masses would continue to suffer at the hands of the economic managers.
Government has offered no relief in POL prices after November 30, 2008 while in international market crude has has time and again touched the lowest ebb of $33 per barrel.
