Senate panel to expose fuel price hike beneficiaries

ISLAMABAD: Amid a zero-bid response to spot tenders for oil imports and the oil industry’s demand for special permission for unusual war-risk insurance cover-based oil imports, including crude and refined products, a parliamentary panel on Monday decided to investigate whether the recent 20pc increase in petroleum prices benefited the exchequer or resulted in unreasonable inventory gains for private companies.

Also, the oil industry in the prevailing extraordinary market conditions demanded that district administrations stop high-handed actions against retail outlets that temporarily run out of stocks. Such actions, reportedly taken under the prime minister’s instructions to curb malpractices, were counterproductive and aggravating supply disruptions.

On the other hand, the government’s recent decision to increase petroleum prices despite the availability of existing stocks drew attention of the Senate Standing Committee on Economic Affairs.

Headed by Senator Saifullah Abro, the parliamentar panel expressed serious concern over the 20pc price hike and questioned the rationale behind the move and the burden it placed on the public, particularly low-income groups.

Mr Abro directed the petroleum division to provide complete details of oil marketing companies (OMCs) to determine whether the benefit of the price increase accrued to the government or to the OMCs.

Earlier, in a letter to various federal government entities, the Oil Companies Advisory Council (OCAC) said, “In the prevailing........

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