IN a welcome move, caretaker Prime Minister Anwar-ul-Haq Kakar on Monday directed the authorities concerned to reduce the prices of essential commodities and services in accordance with substantial reduction in fuel prices. He asked the Chief Ministers to make all-out efforts for transferring the benefits of a reduction in prices of the POL products to the people of Pakistan.
A day earlier, the Government announced a massive reduction of Rs 40 a litre in the price of petrol and Rs 15 a litre for that of high speed diesel, which itself is considered to be a major relief to the inflation stricken people. No doubt, motorists would be the direct beneficiaries as they would be saving substantially on account of fuel cost but there are serious concerns among people about the possibility of a trickle-down effect of the reduced prices of the POL products. This is because it is in the knowledge and experience of everyone that prices of goods and services are increased instantly when prices of oil or electricity and gas tariffs are revised upward but importers, manufacturers and service providers show reluctance in transferring the benefits of a slash in prices and tariff to the end consumer. Even if they do so, they pass on marginal relief to the people and pocket the rest of the relief on untenable arguments and reasons. The concern of the people on this account is justified as the Rupee has gained significant strength versus dollar in recent weeks but so far there are no indications that importers and manufacturers are ready to reduce prices proportionately. In this backdrop, one hopes the Prime Minister would not sit back after issuing instructions to the provincial governments and follow up meetings would be convened to ensure implementation of his directive. It may also be pointed out that the Prime Minister, in his directive, has referred to only ‘essential commodities’ whereas prices of each and every item and services have gone up and an across the board reduction in prices is due. Apart from industrialists and traders, transporters too are fleecing the general public and this calls for activating the dormant institution of Regional Transport Authority for regulating fares.
