AT a time when people were expecting a substantial reduction in the prices of petroleum products the Government shocked them by jacking up ex-depot price of petrol (motor spirit) by Rs. 13.18 a litre and that of diesel by Rs. 13.80 using latest tension in the Gulf as reason for the uncalled-for price manipulation. The unjust move comes as consumers were already agitating against the decision of the Government taken last week to lower prices of both petrol and diesel nominally by Rs. 1.97 per litre, which was considered a joke in the backdrop of a significant reduction in the prices of oil in the international market.
It is now clear that the Government is not following any realistic or fair formula for determination of prices of oil for the local market as prices are adjusted whimsically upward to mint money because of the failure of the authorities concerned to meet tax collection targets. Last week, instead of offering due relief to the masses, the Government preferred to adjust it by increasing the rate of petroleum levy on petrol and diesel, triggering strong resentment among all segments of the population and JI Emir Hafiz Naeemur Rehman announced plans to launch a movement against foul playing in determination of oil prices. No doubt, the prices of oil went up modestly and briefly on resumption of hostilities between the United States and Iran and attacks on three vessels that attempted to cross the Strait of Hormuz without coordination with Iran. However, the prices went down when the United States declared it will continue talking with Iran in the spirit of the Islamabad Memorandum of Understanding (MoU). It is now clear that the prices are adjusted upward merely on the basis of media reports and genuine relief is denied even if prices of oil in the international market fall significantly. In fact, the decision to announce oil prices on a weekly basis itself is a major blow to the price stability in the country and the mechanism is implemented in a way to benefit the Government and the oil marketing companies at the cost of the common man, who has been left at the mercy of inflation.
