The strength gained by rupee against dollar following in flows from IMF and some friendly countries provided a space to government to extend some relief to consumers by reducing prices of petroleum products. In a televised speech on Saturday, Finance Minister Ishaq Dar announced reduction in price of petrol and diesel by nine and seven rupees respectively for next fortnight. The people definitely would have heaved a sigh of relief on this cut as inflationary pressures of last one year or so have literally broken their back.
Regardless of difficult economic situation, we recognise that government in recent months has tried to pass on benefit of reduction in prices in international oil market to domestic consumers. However, we do not see this relief translating into a reduction in transport fares. Those associated with transport sector continue to charge same exorbitant fares. Reaching their work places or offices has really become unaffordable for the people. Authorities concerned need to come out of their deep slumber and ensure that transporters do not fleece consumers. While relief in petroleum prices is welcoming yet recent surge made in power tariff by Rs 4.96 per unit and increasing the duration of peak hours is disturbing for both domestic and industrial consumers. Already the electricity bills were beyond the reach of people and recent steps will further make their nights sleepless. We understand that government had to swallow this bitter pill on the prescription of International Monetary Fund (IMF) but covering line losses and controlling circular debt by burdening those who are already paying their bills honestly is unjust and this will only push consumers for more pilferage and unfair means. Instead of increasing the tariff, it is for government to put the power division in order by introducing much needed reforms. There should be zero tolerance for power pilferage and recoveries must be ensured at all costs to curtail circular debt. Transition to the renewable energy must be fast tracked in order to provide inexpensive and affordable electricity to consumers.
