Feeling generous prior to his imminent return, PML-N chairman, Mian Nawaz Sharif, has instructed the government to bring the price of petrol down to Rs. 190 per liter.
According to media reports, PML-N’s supreme leader has given these instructions to PM Shehbaz Sharif and Federal Finance Minister, Ishaq Dar.
Likewise, reports also claim — citing “party sources” — that Nawaz has instructed providing up to 300 units of free electricity. However, neither the government nor Nawaz Sharif has explained exactly how they will accomplish these tall claims.
OMC Margin Increase
The government has already jacked up margins on MS petrol for oil marketing companies (OMCs) and also hiked the petroleum development levy (PDL) on high-speed diesel (HSD) in its latest fortnightly revisions of petroleum prices.
In the latest oil price revision, the government has jacked up OMC margins on MS petrol by 25 percent to Rs. 5 per liter. As for diesel, the margins fell by 20 paisas to Rs. 5.21 per liter, while the PDL was hiked by Rs. 5 to Rs. 30 per liter.
The average platts with incidentals and duty of HSD has decreased by Rs 11.03 per liter from Rs. 193.99 per liter in the 1st fortnightly of December to Rs. 182.95 per liter for the 2nd fortnightly of December.
The PSO exchange rate adjustment has increased by Rs. 1.43 per liter from Rs. 2.01 per liter to Rs. 3.44 per liter for the last fortnightly of December.
Experts believe that the increase in OMCs’ margins is positive for the long term, but in the short term, they are exposed to declining oil prices, which pose the risk of significant inventory losses in the ongoing quarter.
And they criticise the previous govt. for keeping petrol prices down near their exit from power, and say he played politics at the cost of national interest. Well, seems like Mr. Nawaz has no problem with doing the same. What a bunch of hypocrites!