Oil market sources said that the recent talks held between CNG associations and the government had materialized in reductions in Sindh and Punjab prices by Rs2.75 only, while in NWFP and Balochistan by Rs4.00 per kilo. CNG guidelines had estimated price cut down by Rs8.00 per kilo, but it actually didn’t happen as expected. Sources said that the prices are likely to be further reduced after the amendment in OGRA Ordinance was carried out by the parliament.

You know, who supports these cartels… Government Regulatory Authorities. One true example; Nestle Milk was selling Milk pack Re.1/- per Litre always lower than Haleeb Milk, before 2005 to compete in the market but was not successful due to customers loyalties with Haleeb Milk. A regulatory authority came into being…It imposed on all companies that no body can sell below their fixed price after getting bribery from one company. In 2007, 2 new companies came in the market but they were compelled to sell their milk at same rate and they are still struggling.

How we can facilitate end user by making cartel and encouraging them to do it. It is just like.. people are imposed to give more taxes so we can bear expenditures of these regulatory authorities and mean while..these regulatory authorities sets price flooring after getting bribery from strong group in the said industry. That again results in high prices for end users. What is the real benefit of these regulatory authorities, if they are here to fill their stomachs and no body is bothering to ask them from government also.

The price of CNG station pwners pay for license issuance is recoverable by this percentage, I have also got a feasibility study for setting up a CNG station shows the 2.5 crore Rupees is the cost of American machinery, you may add land cost and license issuing commission ost which is from Rs 3500000 to 5000000. Why government will persue the case of reducing price / kg. if so will any prospect CNG station applicant pay commission?

The idea of govt running CNG stations or setting them up may seem ridiculous (it even does sound so to me) but the fact is if u cut down the comission from 45% to 15-20% no one would be willing to set a CNG station up for initial investment for doing so is too high.

Also well 15% also is not what the CNG cartel will accept and well I would not object to their rejection too for they are in it for business and not on humanitarian grounds.

Saleem:

The tax on Petroleum products ranges from 100-150%of the price………..and the so-called subsidy given by the GOvt is by letting go of some tax and not that they are paying the price from their own kitty.

The reason why they are saying that subsidy be removed is because, Pakistan not being such a great industrial/agricultural/tourist country doesnot have the resources to make its ends meet other than from taxation!!!!!

Therefore the rise in Pertoleum products will continue to be so for the subsidy is going to be removed for now!

Respected sir i totally agree with your perspective and i was amazed to see the numbers which you presented. Technically on every Kg of Gas that goes into our car tanks we are paking almost Rs.29 worth of tax exclusive of the actual cost of Gas.

Yes the prices have increased in the global markets and yes there is high inflation in thisregion with india right now standing on almost 11% of monthly inflation but have things gone so bad in Pakistan that our this month’s inflation rate is almost 20%? Also the Asian region has seen a shortfall in crop production and has seen an increae in demand, yet again i have to ask are things that bad that people have to fight for the basic necessities of life? Why isnt the government taking responsibility of the surging gas and petroleum prices? why are we “the people” paying Rs.27 in taxes for every Kg of gas? and why isnt the government taking responsibility of the smuggling of wheat into neighbouring countries and why isnt the government stopping it?

In one of his recent interviews Mr. Mushahid Hussain (Secretary PML Q) pointed towards the fact that this countires middle class has tremendously grown in intellect and now understands the issues which it is facing and the country is facing.

Our politicians are pressing, destroying and eradicating the only class which can make a notceable difference in this country. The middle class in my point of view is the most effected class by these recent changes. Our politicians through systematic are over burdening us under problems, issues, taxes so we loose our ability to think freely and to challenge them.

People its time we take this countries future in our hand and we make our governments answerable to us.

May Allah have mercy on us and our country. Ameen

When petrol price was Rs 57/-. at that time, PSO ex refinery price was 23.47 Rs per liter (including nominal profits of PSO). It is authentic figure because my very close friend told me. He is working as Manager in PSO. Rest all were charged as Taxes, commision, duties etc etc.

Keep in mind, this price was of pure petrol, not we are buying on stations.