ECC give green sig­nal for monthly oil price re­view

The Pak Banker - - Front Page -

IS­LAM­ABAD

In the back­drop of a res­o­lu­tion passed by the Na­tional Assem­bly, the Eco­nomic Co­or­di­na­tion Com­mit­tee (ECC) of the cab­i­net is likely to give go head to switch to a monthly oil pric­ing mech­a­nism.

Ac­cord­ing to sources, the min­istry of pe­tro­leum and nat­u­ral re­sources will ta­ble the sum­mery be­fore the Eco­nomic Co­or­di­na­tion Com­mit­tee of the Cab­i­net which is sched­uled to meet to­mor­row (Tues­day) for its ap­proval to re­vert to a monthly oil pric­ing mech­a­nism in­stead of the cur­rent weekly re­view. The con­tro­ver­sial weekly price re­view mech­a­nism is also sus­pended by the gov­ern­ment af­ter giv­ing undertaking in the Supreme Court of Pak­istan last month.

Sources said the min­istry of pe­tro­leum pre­pared a sum­mery to shift the weekly oil price mech­a­nism into old monthly oil pric­ing mech­a­nism fol­low­ing

an unan­i­mous adoption of a res­o­lu­tion by the Na­tional Assem­bly to switch to the old oil pric­ing mech­a­nism. The gov­ern­ment has also been re­peat­edly sat aside the con­tin­u­ous rec­om­men­da­tions of the Na­tional Assem­bly Stand­ing Com­mit­tee on Pe­tro­leum and Nat­u­ral Re­sources and the Oil and Gas Reg­u­la­tory Author­ity (Ogra) to switch to the old oil pric­ing mech­a­nism.

The min­istry of fi­nance and the ogra had al­ready op­posed the price re­view on a weekly ba­sis when the sum­mary was tabled be­fore the ECC for its ap­proval, but their con­cerns were not ad­dressed. Ogra was of the view that the cur­rent price re­view was be­ing ex­ploited by re­finer­ies, oil mar­ket­ing com­pa­nies and hoard­ers.

Ac­cord­ing to an of­fi­cial as­so­ci­ated with ogra told On­line that his depart­ment will sup­port the min­istry of pe­tro­leum sum­mery if they (pe­tro­leum min­istry) will seek ap­proval from ECC for re­vert­ing back to the monthly price re­view of oil.

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