Federal Petroleum Minister Ali Pervaiz Malik said in Islamabad that the government plans to introduce a relief mechanism for the gas sector modelled on the one already used for fuel. Speaking to reporters, he also said good news on petrol and diesel prices was expected that day.
Malik said a cartel had been operating in the petroleum sector for the past 50 years, allowing a small number of people to earn billions of rupees. He claimed some individuals had made large sums and then sheltered behind court stay orders.
Minister alleges quota lobbying and cartel activity in fuel trade
According to Malik, certain people allegedly approached him to secure quotas and demanded allocations for oil tankers. He said it was not feasible to sell fuel locally at Rs500 when the international market price stood at Rs1,000.
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He said the government would extend a similar relief scheme to gas. The minister also described the government’s main aim as importing cheaper fuel through a competitive process.
Government plans competition in fuel imports and gas
Malik said a decision had been taken to introduce competition in fuel imports and open the gas sector to competition. He added that the government wanted to bring in cheaper fuel from abroad and pass the savings on to consumers.
The minister said Prime Minister Shehbaz Sharif was working to bring transparency to the system.
Dealers seek forensic audit of refinery profits in Karachi
Earlier, petroleum dealers demanded a forensic audit of oil refineries‘ profits. They argued that a transparent review could reveal room to cut petrol prices by Rs50 per litre.
The demand was raised at an emergency meeting of petroleum dealers in Karachi, where participants discussed refinery profits, pricing and possible consumer relief. Dealers including Malik Khuda Bakhsh and Anwar Kamal called for a transparent audit of the financial affairs of all refineries.
Khuda Bakhsh said refineries had earned in three months what would normally be a full year’s profit, and that a forensic audit would expose the facts. Kamal said consumers could receive relief of Rs40 to Rs50 per litre on petrol if the matter was properly examined.
The dealers said the minister’s statement had confirmed their concerns. They alleged that refineries had earned excessive profits and urged that consumers receive the relief they are owed. They also called for a comprehensive audit of past refinery earnings to prevent further financial burdens on consumers.
