News
Wednesday, May 16, 2012
ECC backs revision of POL prices twice a month* OGRA says move will result in hoarding of POL products in country
By Sajid Chaudhry
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Tuesday approved adjustment of POL prices on a fortnightly basis and also decided to allow export of 400,000 tonnes of surplus sugar.
The ECC met under Finance and Economic Affairs Minister Abdul Hafeez Shaikh.
An official said oil prices in the international market had shown a consistent increasing trend during the last year. Due to this trend, the quantum of increase, accumulated during months, becomes substantial under the existing monthly price adjustment system. In order to reduce monthly-accumulated higher pricing burdens on the consumer, it was therefore proposed that the domestic sale price of petroleum products might be adjusted fortnightly.
However, the Oil and Gas Regulatory Authority (OGRA) opposed the move, arguing that it would result in hoarding of POL products in the country. It said the practice of reviewing POL prices fortnightly had been abolished for the same reason and it must not be adopted again.
The ECC also allowed export of 400,000 tonnes of sugar in two phases.
The committee also held a detailed discussion on the summary moved by Water and Power Ministry, seeking approval of the sub-committee’s report on delay of payments by the power purchasers to IPPs under the power policy of 2002.
The ECC said that the ministry should improve terms of settlement of dues with IPPs and submit a report to the committee.
Examining the proposal of refund on general sales tax on Gas Infrastructure Development Cess, the ECC decided not to approve this proposal as the “applicable law does not permit the same”.
Discussing allocation of gas at wellhead of OGDCL dormant field, the ECC directed the Ministry of Petroleum and Natural Resources to coordinate with the government of Sindh for getting formal approval from the latter in this regard.
The committee also constituted a committee to look into the summary, moved by Petroleum Ministry, for the import of LNG.
Tariff protection to the industry manufacturing electrolytic tinplate was also approved by ECC by reducing the import duty from 15 percent to 10 percent on import of raw materials for electrolytic tinplate. However, the ECC chairman directed the officials concerned of the Commerce Ministry to prepare a summary for strengthening the National Tariff Commission (NTC) and to decide the time of implementation of tariff protection to industry.
Courtesy www.dailytimes.com.pk