POL prices
Sigh of relief likely in next fortnight
By Asad Cheema

ISLAMABAD—The Government would review the petroleum prices and pass on some benefit to consumers if prices remain constant at the international market in next couple of weeks, Federal Secretary Petroleum, Ahmed Waqar said on Friday.
“We have reached at break-even stage for present financial year as price difference of Rs.1.2 billion on petroleum products is likely to be wiped out by December 15,” he said while briefing a group of newsmen here. Now, we have decided to adopt a no profit no loss strategy on petroleum pricing from December 15, he added.
He said there may be a downward adjustment in the prices of petroleum products if the prices are reduced at the world market. The Federal Secretary said the upward movement in petroleum prices was inevitable following the surging prices at the international market but a complete increase was never passed on to the consumers.
He said a amount of Rs.28 billion has so far been paid as price differential claim to the oil companies while we have to pay another Rs.18 billion to these companies. Ahmed Waqar informed that there was 59 percent increase in the prices of diesel, 47 percent in kerosene oil and 56 percent in petrol when the government freezed the prices in May 2004.
Responding to a question, he said the prices of petroleum product in our country are still nine percent low as compared to India. About performance of the oil refineries, he said all the refineries are running with full capacity and they are allowed to export the surplus production.
Regarding Iran-Pakistan-India (IPI) Gas Pipeline Project, he said the consultant of the project has submitted the report which is being analyzed. The Petroleum Secretary said the consultant would present his report in the next meeting of the Joint Working Group for discussion.
He said we are in contact with Iranian government to determine the venue and date for holding of the meeting. Current OPEC President and Nigerian Oil Minister Edmund Daukoru has said he expects a cut of at least half a million barrels per day in oil output after the cartel’s December 14 ministerial meeting in Nigerian capital Abuja.
“When we meet (on December 14), we will look at the data and the trend and I do not expect anything less at this meeting,” Daukoru told a group of journalists Friday who had asked him if the expected output cut from OPEC could reach half a million barrels a day. “There is likely to be some further trimming. The actual amount (to be cut) would depend on circumstances. And what we are seeing now will definitely influence our decision: how much to cut,” he told three journalists caught up with him in a lift as he got set for a press conference.
He said he was beginning to be happy with the current oil prices, but he said that he was not fully satisfied with them yet. “I am beginning to be happy with the current prices but not fully happy yet, he said. “I do not see prices getting back to the 70s. Definitely not the upper 70-plus dollars that we saw back in August,” Daukoru added.
World crude prices climbed above 61 dollars per barrel on Tuesday ahead of expected colder weather in the United States and an output cut by OPEC in mid-December