REGARDLESS of recommendations by OGRA to increase the prices of petroleum products, the government decided to maintain the prices at the current level for the month of September. In a statement, Prime Minister Imran Khan said people are already facing high food inflation and need some reprieve especially because of heavy rains.
The very decision needs to be welcomed as it shows the concern of the government for the common man. In fact, there was also no justification whatsoever for the increase in petroleum prices when they are still hovering around $ 45 a barrel in the international market. The petroleum levy is already on the higher side and instead of enhancing its revenue from this source, the government must bring reforms in the FBR to enhance the tax collection with focus primarily on the direct taxation. These petroleum prices have a direct bearing on the transportation cost and manufacturing. Oil price increases generally raise inflation and reduce economic growth. High cost of energy also makes our export-oriented products uncompetitive at the international market. Therefore, stability in their prices is very important that will also help the government bring down the prices of essential commodities. The soaring prices of essential items such as wheat flour and sugar have badly affected the purchasing power of the consumers and concrete measures are required on the part of relevant authorities to protect them from hoarders and profiteers. About two months ago, a Committee was constituted to probe into the shortage of petrol that hit the country when the government had substantially reduced the prices of oil. The mafias in the petroleum sector also need to be exposed as was done in the case of sugar industry. Apart from generating economic activity, the focus of government must remain on providing maximum relief to the masses to keep its popularity intact.
