ISLAMABAD: Federal Petroleum Minister Ali Pervaiz Malik has said the government plans to introduce a fuel relief-style mechanism in the gas sector, adding that good news regarding petrol and diesel prices is expected today.
Speaking to the media, Ali Pervaiz Malik said a cartel had been operating in the petroleum sector for the past 50 years, allowing a few people to earn billions of rupees.
He said certain individuals had made billions of rupees and then taken shelter behind court stay orders. They allegedly approached the petroleum minister to secure quotas and demanded allocations for oil tankers.
The federal minister said it was not possible to sell fuel locally at Rs500 when its price in the international market was Rs1,000.
He said the government would introduce a similar relief mechanism in the gas sector to the one introduced for fuel.
Ali Pervaiz Malik said the government’s priority was to import cheaper fuel through a competitive process. He said a decision had been made to introduce competition in fuel imports and open the gas sector to competition.
He added that the government wanted to import cheaper fuel from abroad and pass the benefit on to consumers.
The minister said Prime Minister Shehbaz Sharif was making efforts to bring transparency to the system.
Refinery audit could pave way for Rs50 petrol price cut
Earlier, Petroleum dealers demanded a forensic audit of oil refineries’ profits, claiming that a transparent review could reveal scope for reducing petrol prices by Rs50 per litre and providing relief to consumers.
The demand was raised during an emergency meeting of petroleum dealers in Karachi, where participants discussed refinery profits, petroleum pricing and possible relief for consumers.
Petroleum dealers, including Malik Khuda Bakhsh and Anwar Kamal, called for a transparent forensic audit of the financial affairs of all refineries to establish the actual profits earned by the companies.
Malik Khuda Bakhsh said refineries had earned profits equivalent to a full year’s earnings in just three months. He said a forensic audit would bring the facts about their profits to light.
Anwar Kamal said consumers could be given relief of Rs40 to Rs50 per litre on petrol if the matter was properly examined.
The dealers said the petroleum minister’s statement had confirmed their reservations. They alleged that refineries had earned excessive profits and demanded that consumers be given their rightful relief.
They further called for a comprehensive audit of the refineries’ financial records to determine their past earnings and prevent additional financial burdens on consumers in the future.
