OGRA to oppose revision of petroleum prices

The Oil and Gas Regulatory Authority (OGRA) has decided to oppose the Petroleum Ministrys summary which has sought Economic Coordination Committees (ECC) approval to revise oil prices on weekly bases.According to sources OGRA will again oppose the summary of petroleum ministry in today’s ECC meeting as it believes that to determine oil prices on weekly bases will provide an opportunity to hoarders and dealers to create artificial shortage of oil in the country.“To fix oil prices on weekly bases is not practicable in a country like Pakistan because from the proposed move only hoarders and dealers will take benefit and rest of the price-stricken people would face more miseries as after the approval they will be on the mercy of hoarders and dealers,” sources added.Sources further said on the desire of oil refineries the petroleum ministry has moved a summery to the ECC to seek its approval for price revisions on weekly bases because ministry believe so that burden of high prices for fortnightly can be avoided.The ECC had already deferred its decision on a summary of the petroleum ministry proposing oil price revision on a weekly basis.In the meeting ECC will consider the guarantees required for Pakistan State Oil (PSO)in an attempt to increase the period of furnace oil import from current two months credit to four-month from international suppliers.The ECC will take up the issue of the liquefied natural gas (LNG) import project for which petroleum ministry has again sent summery to the ECC in which seek its approval to award contract for the import of LNG.The ECC will mull over Rs.736 million losses claimed made by the Independent Power Producers of gas curtailment which has generated dispute between the Ministries of Water and Power and Petroleum.In the meeting ECC will also consider exclusion of high octane blending component (HOBC) from the inland freight equalization margin and capacity payments to independent power producers.