ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved the recommendations of the Oil and Gas Regulatory Authority (Ogra) regarding increase in prices of other petroleum products, but did not agree with the proposed price of petrol.
Ogra had suggested that the price of petrol be increased by Rs14.37 per litre, but an ECC meeting, chaired by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh, approved an increase of Rs9.34 per litre in its price.
The decision is subject to an approval by the federal cabinet. If the decision is approved by the cabinet the new price of petrol will be Rs108 per litre.
The ECC noted that by rejecting the price of petrol as calculated by Ogra, the government would be giving a subsidy of Rs5.03 per litre and that the gap would be covered through reduction in GST by 5 per cent.
The finance ministry informed the ECC that the total revenue loss in this regard would amount to Rs5 billion for the month of May.
The ECC, however, approved the increase in the prices of other petroleum products as recommended by Ogra. The ECC decision has been forwarded to the federal cabinet for a final verdict. Ogra has recommended increasing the price of diesel to Rs112.32, that of light diesel oil to Rs86.94 and that of kerosene oil to Rs98.77 per litre.
The ECC was given a presentation by the Ministry of Industries and Production about recommendations of an expert group constituted to work out a plan for revival of the Pakistan Steel Mills (PSM).
The ECC approved the recommendations of the ministry and instructed that due process be completed for listing of the PSM for privatisation with a view to implementing the revival plan based on private sector inputs.
The experts group has suggested that the government should not operate the PSM as a state-run entity, neither should it be privatised because it is a strategic asset of the country.
The group has suggested that the government should turn the PSM into a public-private partnership (PPP) initiative and after approval by the cabinet a ‘transactional adviser’ be hired to develop parameters for the initiative.
The hiring of the transactional adviser and evaluation of the foreign investors showing interest in the PSM would be the responsibility of the Privatisation Commission.
The ECC approved a proposal of the petroleum division to allocate gas from the Thal East, Bhambhra and Thal West fields to the Sui Southern Gas Company.
The industries division updated the ECC on the Ramazan relief package and informed it that Utility Stores outlets across the country were being stocked for the holy month.
The ECC also approved supplementary grants and technical supplementary grants for different ministries/divisions and approved payment of salaries to Khasadars of South Waziristan.
