IN a much-needed respite for the masses, the federal government has announced a substantial reduction in petrol and diesel prices for the second time this month. The move, slashing petrol by Rs15.39 per litre and diesel by Rs7.88 per litre, comes as a breath of fresh air amidst the ever-increasing burden on the common man’s pocket.
Such steps not only alleviate immediate financial pressures but also have the potential to trigger a ripple effect, positively impacting transportation costs and ultimately leading to a reduction in prices of other essential commodities. This domino effect can significantly ease the strain on household budgets, particularly for low-income families. However, while celebrating this move, it is imperative to address the concurrent challenge looming on the horizon: the proposed hike in electricity tariffs. The government’s petition to NEPRA seeking a substantial increase in power purchase prices raises valid concerns among the people. Recent events in Azad Kashmir, where protests prompted a reduction in electricity and wheat prices, highlight the sensitivity of the issue. Any perception that subsidies granted elsewhere are offset by raising tariffs elsewhere could lead to discontent among the people. Already burdened by escalating living costs, the prospect of further increases in electricity tariffs is bound to stoke public resentment. Undoubtedly, the government faces a daunting task in navigating the economic landscape, especially amidst negotiations with the IMF. However, resorting solely to tariff hikes risks alienating the very people it aims to assist. Instead, a multi-faceted approach is necessary to address the root causes of the circular debt plaguing the energy sector. One avenue is to crack down on power pilferage and reduce transmission losses. Implementing stringent measures to curb electricity theft and investing in infrastructure upgrades can significantly mitigate revenue losses. Moreover, enhancing energy efficiency measures and promoting renewable energy sources can contribute to long-term sustainability while reducing dependency on costly imports.
