ECC give green signal for monthly oil price review
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.