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Summary
The government has advised to deregulate prices of petroleum products from 1st February 2011. The Ministry of Petroleum is considering over absorption of the rising impact of petrol price by Rs 9.4 per liter and diesel Rs 8.2 per liter, Dunya News reported.In a meeting of Parliamentary Committee held in Islamabad regarding prices of petroleum products, Finance Secretary Waqar Masood told that if the prices are not increased, then a subsidy of 30 billion rupees will be paid. A loss of nearly 12 billion rupees will be faced during the months of January and February. The Minister of Petroleum told that if these prices are not increased, then budget deficit will increase and as a result of which oil will be imported at a much higher price due to lower value of rupee accordingly. On the other side, all the political parties present in Parliamentary Committee opposed the advise for increasing prices of petroleum products.
