THE Government has adopted a stubborn attitude on the issue of petroleum levy despite the fact that it has become one of the major factors behind the latest wave of price-hike. This aspect was further highlighted on Thursday when the Government’s own Power Division and the manufacturing sector unanimously called for the removal or reduction of the petroleum levy on furnace oil and diesel used for power generation, stressing that it was resulting in about Rs10 per unit additional impact to electricity costs. At a hearing of NEPRA representatives of the industry said removal of the levy could reduce the cost of generation from around Rs 62 to Rs 44.50 per unit.
No doubt, the Government is earning hugely through petroleum levy but its imposition is seriously hurting the national economy and burdening the common man unjustifiably. In this backdrop, it is strange that the Government is resisting the pressure of the public opinion in this regard on flimsy grounds that it would not bow down before political pressure. The logic of the Government, as expounded by Minister for Planning Ahsan Iqbal was untenable who ruled out the possibility of an immediate reduction in petroleum levy rates under any pressure from Jamaat-e-Islami, adding that the Government would consider a gradual decrease in rates from the next budget. This is, in fact, an indirect NO to a popular and genuine demand of the people of Pakistan as the next budget is eight months away and then there could be a ‘gradual’ reduction and not its total elimination. The JI is championing the cause of the people who are protesting over the sharp rise in inflation caused by engineered prices of the petroleum products. Instead of blaming the JI, the elected Government should demonstrate sensitivity towards the plight of the people. The imposition of levy has not only pushed the generation cost of electricity up but also the prices of all goods and services. The PM’s fuel relief programme might have benefited motor-cyclists and small car owners but the entire population has negatively been affected by the imposition of the levy on petroleum and diesel. As prices of oil are increasing in the global market due to the Gulf war, the Government should have offered subsidy to provide relief to consumers but unfortunately, in addition to passing on the impact of any change in the global price of oil to the people of Pakistan on a daily basis, it is also minting money through the levy at the cost of miseries of the people.
