CONTRARY to the initial reports suggesting a drastic cut in prices of the POL products, the Finance Ministry, in a belated move, announced a modest reduction in the prices of petrol and diesel for the next fortnight. The price of petrol has been lowered by Rs 4.74 per litre while that of the diesel by Rs. 3.86 per litre. In a now deleted post, the PTV reported that Prime Minister Shehbaz Sharif had directed a more substantial reduction of Rs15.4 per litre for petrol and Rs7.9 per litre for diesel for the next fortnight.
Irrespective of whether it was a change of heart on the part of the authorities concerned or misreporting by the official media, the fact remains the Government is not passing on proper relief to the people whenever it is due because of falling prices of oil in the international market or stability of the exchange rate. This has been happening for a long time despite claims by successive governments that the prices of POL products are adjusted upward or downward based on fluctuation in their price in the international market. People of Pakistan would not mind paying the actual cost of oil plus transportation and other overhead expenditures but there is an unfortunate tendency on the part of the decision-makers to use prices of POL products and tariffs of both electricity and gas to mint money. There are multiple and undue taxes on oil as well as electricity, which is a genuine source of heart burning among consumers. The government is charging Rs. 60 a litre as petroleum development levy on petrol and HSD besides Rs. 82 per litre as tax and Rs. 20 per litre as customs duty. These taxes need to be rationalized and the Government should also ensure that whatever relief it gives should reach the end consumer and is not pocketed by manufacturers and service providers.
