Islamabad: The Petroleum Division in while addressing in Islamabad talked about the increase in cost in the Petroleum Products said that the new rates were for the benefit of people.
The Division said that this step was taken after a 112% surge of petroleum in the international market in the last 46 days, and the early announcement will save people as there would be a further increase in July.
Minister of Power and Petroleum Omar Ayub Khan said: “The government increased the rate just by 25% as it will give maximum relief to the masses under the vision of Prime Minister Imran.”
He also said “When the petroleum prices decreased in the international market, the benefit was passed on to the masses. Now when the prices have increased a substantial relief has been given to the common man with an increase of just 25% while the world market is increasing it by 112%.”
He also said the fuel prices in Pakistan being a non oil producing country were comparatively low compared to other countries in the subcontinent and Asia.
He also said, “According to our calculations in the light of the current exchange rate an increase of Rs31.5 to 32 will take place on July 1 as new cargo is going to be unloaded.”
He added “On the advice of the prime minister the finance ministry had issued a notification with the new rates for 35 days which in the end means losses to the oil manufacturing companies (OMC).
Talking about the current petrol dilemma the prime minister’s aid said “OMC’S are licensed to set aside of 21 days. Several of them reserves for 15 or 12 days and PSO had stored stock for 18 days.”
He also said “The Oil and Gas Regulatory Authority (OGRA) have been asked to take action against the companies who have reserves and that PSO was advised to import more.
Talking more in detail he said “There are three elements which can stop this crisis. First OGRA should be strengthened and it should revoke the licenses of the companies who don’t have substantial stocks for 21 days. We are working to have it implied.”
Currently, there are around 9000 pumps registered and there are over 1,500 illegal pumps who don’t have any agreement with OMC.
He said “Due to the huge difference in prices between the global and local markets, some illegal pumps and OMCs have illegally stockpiled the commodity. The oil company have stored it in their facilities but they have not provided to pumps.”