THE coalition government has once again decided not to increase the prices of petroleum products and maintain them at the current level.
According to a notification issued by the Energy Ministry, the government would continue maintaining the price differential claims (PDC) of Rs47.02 per litre on petrol, Rs86.71 litre on high-speed diesel and Rs51.83 per litre on kerosene oil and Rs67.84 per litre on light diesel oil.
In the international market, the oil prices are hovering around $ 110 per barrel but out of political compulsion, the government appears indecisive to take tough economic decisions including that of increasing the prices of petroleum products.
By not increasing the prices a relief is being extended to the people but this will also have serious repercussions on the country’s economy.
Purchasing the oil at higher prices and then selling it to the consumers at lower rates is something which is a burden on the national exchequer and not sustainable at all.
According to our understanding, petroleum prices in Pakistan are now lower even from the countries which are the major producers of petroleum products.
This is the reason that the economic experts themselves are of the view that the price pressure should be passed on to the consumers.
Politically tough decisions will have to be taken to save the country from default.The country’s interests should be kept supreme ahead of petty political interests.All the allied parties should sit together and reach a consensus on the matter.
We will suggest that a mechanism should be evolved in order to extend targeted subsidy to the deserving class especially the motorcyclists on the petroleum products.
The mechanism should be such that nobody could exploit or misuse it.
As majority of the poor people especially labourers use the public transport especially metro service in big cities, there should not be any increase in their fares. Increase in petroleum prices definitely will push up the inflation.
To protect the poor consumers, subsidy on essential commodities should be extended through the network of Utility Stores.
