As the government decided to increase the POL prices in a haste without the cabinet approval or any summary sent by Ogra (Oil and Gas Regulatory Authority), Energy Minister Omar Ayub defended the move on the floor of the National Assembly, saying they believed in moving according to price variation [in the international market].

Speaking in the House on Saturday, Omar Ayub claimed that the country did not have its own resources and the prices in the international market had increased by 112 percent recently.

The minister also maintained that the POL prices in Pakistan were still less than other South Asian countries, as he also cited the examples of China and Japan while forgetting the per capita income there. The previous government used to keep “windfall” but they were against that policy, said Omar and added that no new tax had been levied on the POL products.

In his response, PML-N leader Rana Sanaullah described the move as the biggest robbery in the country’s history and said the government along with the oil mafia had robbed the people of billions of rupees.

Earlier, 24NewsHD TV channel quoting sources reported that the increase in the POL prices was made amid the pressure exerted by the oil marketing companies.

The government had assured these companies of increasing the prices with effect from June 1 after which they stored the POL products but instead a reduction was announced. As a result, these companies created an artificial crisis.

According to the sources, the government surrendered before the marketing companies around the middle of June after which they proposed the new prices which were approved by the finance ministry without any hesitation.

The sources also say that the troika of Adviser on Finance Abdul Hafeez Shaikh, Special Assistant Nadeem Babar and Omar advised the prime minister to raise the prices for meeting the marketing companies’ demands and end the petrol crisis.

The per barrel oil price in international market averaged around $39 in the international market while the government bought oil at the rate of $34 to$36.

In this scenario, experts are of the view that the government could have reduced the prices by slashing the petroleum levy. However, the government increased the petroleum levy on petrol and diesel by Rs20.

The question is: who is the beneficiary of this sudden price increase. That’s why questions are being raised about the government, as neither an approval was taken from the cabinet for the price hike nor had the Ogra suggested this move.

LHC moved against hike in POL prices
INP adds: The fresh increase in petroleum products’ prices by the government was challenged in the Lahore High Court (LHC) on Saturday.
The petition, filed by advocate Muneer Ahmed, stated that the increase in the prices was illegal as rules and regulations were not followed by the government.
It said the petroleum prices were increased without taking approval from the federal cabinet. The petitioner pleaded with the court to declare the recent increase in the fuel prices as illegal.
Shehbaz Sharif rejects hike in petrol prices
INP adds: Pakistan Muslim League-Nawaz President Shehbaz Sharif has rejected increase in petrol prices and termed it as anti-poor step by the government of Prime Minister Imran Khan
Condemning the increase, Sharif said that first the government allowed hoarding of petrol by decreasing its rates and then benefited the petrol mafia by increasing prices.
The PML-N president said the prices of other commodities were not decreased when the fuel rates were decreased, but they will rise with the recent hike in petrol prices.
He said that the selected Prime Minister has no concern for the common man and their problems and added that Imran Khan cannot support the sinking economy due to his incompetence by looting money from the pockets of poor people.