IN a strange development that shocked the people of Pakistan, the Government, on Friday, jacked up the prices of petroleum products up to 66 per cent citing increasing trend of prices of the oil in the international market. As a consequence of the decision of the Government, the price of petrol (motor spirit) has been raised by a whopping Rs 25.58 to Rs 100.10 per litre from the existing Rs 74.52, an increase of 25.6 per cent, According to a Finance Division press release, price of high-speed diesel (HSD) has been hiked to Rs 101.46 per litre from the current price of Rs80.15, a jump of Rs 21.31 and the new price of kerosene oil (SKO) will be Rs59.06, a rise of Rs 23.50 over the existing Rs 35.56.
This is highly non-transparent decision by a Government that claims to be championing the cause of transparency in decision-making and business of the governance. The unexpected move comes five days ahead of the routine deadline for continuation of existing prices of the POL products that are normally revised from first of every month. The Government has not explained the rational of the revision except claiming that the decision was aimed at sharing the impact of rising international prices with the consumers, a plea that no one would buy as global Brent prices stood at $ 41.02 a barrel as of June 27 whereas consumers in Pakistan were already charged more and the increase could have been accommodated in the prevailing prices. In fact, in view of dramatic reduction of prices of oil in the global market, people were expecting further reduction in prices but the Government surprised them by revising the prices massively and that too with immediate effect. The decision comes in the backdrop of inability of the Government to ensure smooth supply of petroleum products in all parts of the country after reduction in prices last month. The oil mafia was unwilling to pass on the relief to the consumers and now it has been gifted with unprecedented increase which means substantial profit on existing stocks. The sudden increase also confirms the impression that the Government has taken the decision to please the International Monetary Fund (IMF), which shows how vulnerable have we become – we cannot provide even due relief to the masses. The move is also worrisome as the disproportionate increase would be taken as excuse by industrialists and businessmen to fleece the general public further, which was denied benefit of reduction in oil prices and other factors. People are already hard-pressed due to Covid-19 related financial and economic constraints and the unfair increase in prices of POL products might push millions more below the poverty line while compounding difficulties of others. The decision needs to be reversed because of its adverse implications not just for ordinary citizens but also for the overall economy.
