ISLAMABAD: The Economic Coordination Committee (ECC) on Sunday directed Petroleum Division to work out options in consultation with OGRA for setting up petroleum product prices within a week, said a press release.

Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the ECC of the Cabinet at the Finance Division.

Federal Minister for Power Khurram Dastgir Khan, former prime minister Shahid Khaqan Abbasi, Minister of State for Petroleum Musadik Masood Malik, Coordinator to the PM on Economy Bial Azhar Kayani, Chairman FBR, Chairman OGRA, federal secretaries and senior officers attended the meeting.

The ECC further directed Petroleum Division for submission of proposal within a week to regulate the prices of Kerosene Oil and Light Diesel Oil after consultation with relevant stakeholders.

Ministry of Energy (Petroleum Division) submitted a summary on SOS call for funds for Pakistan State Oil Company Ltd. (PSOCL) to meet international contractual payments during 1-14 August, 2022.

It was informed that there had been a decline of sales of HSD and MS for PSO by 28% and 32% respectively. Further devaluation of Pakistani Rupee against US dollar had resulted in increased cost of procurement of petroleum products.

For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of previous government and approved an amount of Rs 30 billion as supplementary grant for PSO receivables.

On another summary of Petroleum Division on price mechanism of petroleum products, the ECC accepted the proposal to use the average of exchange rate for the relevant period rather than the exchange rate of the last day for the current as well as future price determinations

It was also decided in the meeting that Power Division will make immediate payments of the current outstanding amounts of Rs 20 billion by 1st August 2022 and Rs 12.8 billion by 4th August 2022.

The ECC also directed Finance Division and FBR to submit proposal for generation of Rs 30 billion through taxes, within a week.