EVER since the break out of Covid-19 in the country, the
government has tried not to withhold the relief for the masses wherever possible. Especially it has tried to pass on the benefit of lower international oil prices to the people. On Sunday, the government further reduced the prices of petrol by Rs 7.06 per litre, kerosene Rs 11.88 and light diesel oil by Rs 9.37 per litre for the month of June.
The Petroleum Division, in fact, had proposed to keep the petroleum prices unchanged for at least next fortnight, as the oil marketing companies and oil refineries had taken the plea if the prices are cut, they will face inventory losses but it really goes to the credit of the government of not giving ears to their demand and passed on the benefit of low oil prices to the consumers. This time the reduction was completely made as per the recommendation of the Oil and Gas Regulatory Authority (OGRA). The substantial cut in petroleum prices made over the last two months will help contain the inflation and now responsibility rests with the provincial governments to ensure the benefit reaches the end user. It has been seen in the past that when the oil prices go up even by one rupee, the transport fare is substantially enhanced that but when the prices are reduced, the fare does not come down in the same manner. A mechanism needs to be evolved ensuring that the transport mafia does not plunder the pockets of the commuters and the benefit of lower oil prices reach them in full. The same applies for the cargo transportation which, in fact, will help bring down the prices of commodities in the open market. As the oil demand is picking up momentum after the lifting of restrictions in different countries, the government must also immediately finalize its hedging plan of buying oil in advance in order to benefit from the current low prices in the global market. Doing so will really help the country cut its import bill and this will have also a positive impact on the economic growth.
