The MoF was of the view that even at the lowest rate of $111 a barrel, subsidy on one litre of diesel was around Rs 31.29. The MoF officials were of the view that benefit of dip in the crude oil price would be used for cross subsidising diesel and petrol prices to reduce subsidy.
There is mounting pressure on the government from the parliamentarians of the ruling parties that it should cut down oil prices when its rates have substantially reduced internationally in recent weeks. They also demanded action against the station- owners who are selling compressed natural gas (CNG) at exorbitant rates.
One of the ruling parliamentarians had voiced concern over overcharging of CNG prices by station owners and demanded of the Prime Minister who chaired the parliamentary party meeting of PPPP a few days back. They demanded cancellation of the licenses of all such CNG stations.
The Prime Minister will be given a presentation on the oil prices on Friday. The officials of MoF, MP&NR and Oil and Gas Regulatory Authority (Ogra) will give presentation to Yousuf Raza Gilani at Prime Minister House.