THE government on Thursday announced an unprecedented increase of 43 per cent and 55 per cent in the prices of petrol and high-speed diesel (HSD), respectively, along with early market closures and targeted subsidies for bikers, farmers and transporters to cushion the impact of global oil price shocks amid the US-Israel war on Iran.
Under the revised rates, the ex-depot price of petrol has been increased by Rs 137.23 per litre (42.7%) to Rs 458.41 from Rs 321.17, while HSD has been raised by Rs 184.49 per litre (55%) to Rs 520.35 from Rs 335.86, with immediate effect. The price of kerosene was also increased by Rs 34.08 per litre to Rs 457.80.
The cabinet members who announced the hefty increase justified it saying the objective was to restrict subsidies to the most deserving segments while maintaining fiscal discipline and preserving economic stability achieved over the past two years under international commitments, a reference to the IMF programme. True, but the Government showed insensitivity towards an issue that means much for people of Pakistan – the increase in the cost of living that will be triggered by this decision. There is no justification to derive satisfaction from symbolic measures like so-called subsidization of fuel for bikers and farmers will be a fraction of the pressure their pockets will feel due to a steep rise in the prices of goods and services. There are also many ifs and buts about transparency of the subsidy and judicious spending of the savings incurred through different measures. We have been hearing for the last one year that the economy has stabilized and now attention is being focused on growth but regrettably the country could not absorb the oil shock even for a few weeks. It is also unfortunate that instead of lowering the petroleum levy, the Government has increased it further and in view of the bitter experiences of the past, it is feared that the uncalled for levy will become a permanent burden on consumers. Together with the levy of significantly higher fixed charges in electricity bills, this hike will surely force people to compromise on the quality of life, which is already not enviable.
