The Oil and Gas Regulatory Authority (OGRA) has hinted at rising petroleum products prices from March 1 linking it to the depreciation of Pakistani currency and unprecedented hike in international crude oil prices.
While briefing the NA Standing Committee on Energy (Petroleum Division) Chairman Ogra Masroor Khan said that the situation is in front of you as there is no precedent for rising oil prices in the international market which had occurred during the past 12 weeks. The meeting was chaired by Imran Khattak.
OGRA chairman said the rupee has also depreciated sharply against the dollar. He said that the government is receiving Rs. 14 petroleum levy per liter while GST is zero. The money coming into the treasury is being compromised, he added. The Chairman of the committee asked how the situation in Russia and Ukraine will impact the prices of PoL products in the country? Chairman Ogra responded that from the current situation, you can guess the answer. As prices go up, the burden will fall on the people, chairman Ogra added.
Khurrum Dastagir asked if there was any fear of rising diesel prices? Chairman OGRA Masroor Khan replied that the Oil Companies Advisory Committee (OCAC) and other stakeholders have expressed their concern in this regard. Masroor Khan further informed that the formula of oil prices determination has not changed and they are still following the old formula.
Briefing the committee on Pak Stream Gas Pipeline, Secretary Petroleum Ali Raza Bhutta informed that talks with Russia on the gas pipeline project were completed. He said that Russia will also invest and lay the pipeline. He said that groundwork on the project will be started soon. Secretary petroleum further informed that PLL has purchased another expensive LNG cargo for March. The cargo was purchased at a rate of $25.12 per MMBtu.
The Committee was briefed by the OGRA Chairman that establishment of Pabbi Sub-Area and Customer Service Center (CSC), Jehangira; that the proposal in this regard has been submitted by SNGPL to OGRA in review petition against the decision of estimated revenue requirement (PERA) for the fiscal year 2021-22; and that the decision is pending while Standing Committee approved the minutes of the previous meeting and also approved the previous recommendations of the Committee along-with few changes recommended by the Committee and details thereon will be described in the detailed report of the meeting.
Moreover, Standing Committee unanimously approved the Scrutiny of the budgetary proposal of the Ministry relating to the Public Sector Development Program (PSDP).
Two (Govt Bills) were taken up by the Committee in the meeting and decided that the “the Petroleum (Amendment) Bill, 2021” may be passed by the National Assembly whereon Law Ministry has provided few technical legislative drafting related corrections to be incorporated as well. Whereon, the “The Pakistan Petroleum Upstream Regulatory Authority Bill, 2022” (Govt Bill) may be deferred for further deliberation thereupon.
The Committee while taking the briefing from one Managing Director namely; Imran Munir from (SSGC) Official decided that his reply is not as per the rules and due to such defiance from his duty his matter may be referred to the Privileged Committee.
