Islamabad: The Economic Coordination Committee (ECC) is scheduled to take up an 11-point agenda, including a summary from the Petroleum Division that seeks permission to initiate the process of hedging the prices of 15% of imported petroleum products in Pakistan, through the use of the ‘call option’ financial instrument today, according to news sources.
The meeting will review summaries submitted by various ministries, including the summary titled “Hedging prices for petroleum products being imported” submitted by the Petroleum Division.
According to an official from the petroleum ministry, if the ECC approves their summary, the benefits will be reaped by the ordinary citizens from stable and cheaper petrol prices. As per the proposal, the ministry is asking to hedge the prices of 15% of the imported petroleum products from a total annual import of 68 million barrels’ oil – for as long as two years.
The government is expected to use the financial instrument of ‘call option’ for 15 million barrels of oil – for a duration of one or two years. A call option provides the buyer with an opportunity to hedge against the spiking prices for a defined volume and duration.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
