ECC takes up oil price, dealers' margin today

ISLAMABAD - Economic Coordination Committee (ECC) of the Cabinet is holding a meeting here today chiefly to decide the fate of the benefit drawn from the dip in the oil prices.
Prime Minister's Advisor on Finance Shaukat Tarin will chair the meeting.
According to sources in Finance Ministry, the government is in a fix as the Oil and Gas Regulatory Authority (Ogra) has, once again, recommended Rs 5 a litter reduction in the price of supreme petroleum at the time of fortnightly review on December 31. At the same time the dealers in addition to the oil marketing companies were also asking for increase in their respective commissions.
While international crude dipped to four-year low at $37 a barrel during the outgoing fortnight relieved the govt the cost of subsidy, it has increased its worries of revenue loss on account of both import duties and general sales. Therefore, the govt has been contemplating not only to increase existing rate of Petroleum Development Levy as it increased in an unannounced manner earlier this month but also to introduce new taxes on the oil and gas sector, the sources.
Thus, the intentions of the Finance Ministry appeared to be against any more relief to the masses by reducing the prices as recommended by the Ogra. At the same time, the Petroleum Ministry would defend the continuation of fortnightly review by passing on the benefit of the international crude oil's dip to the consumers in Pakistan, the sources maintained.
The ECC would also take up movements in the essential prices, besides reviewing the state of inflation in the country that has been reported to stay around 25 per cent during the last fortnight or so.