Hike in Petrol Prices!
By the Editor

THE Oil Companies Advisory Committee has raised prices of petrol by Rs 2 per litre bringing it to Rs 42.39 per litre, prices of kerosene oil and HOBC and light diesel by Re 1 to Rs 2.73 per litre. Similarly, the price of high speed diesel has also been raised by paisa 95 per litre bringing it to Rs 27.16 per litre.

The rapidity with which the prices of petroleum products are raised is a mockery of the price stability concept. The Government’s apathy towards the situation is simply loathsome. It must remember that it cannot absolve itself of its responsibility to regulate prices of essential commodities including petrol by setting up a committee and leave the people to its whimsical and impulsive decisions.

It’s deplorable that the Government is totally unmindful of the financial burden of the persistent price escalation on the middle classes of the society. It seems that it is only interested in its share in the form of taxes and duties on the petroleum products in utter disregard for the public interest.

The taxes and duties on petroleum products are being projected as the major source of Government’s revenues since about half of the cost goes to the national exchequer. It’s a disgusting state of affairs that needs to be obviated. The people deserve relief on this count.

It will be appropriate for the Government to absorb the raise in oil prices in international market against its taxes and duties on petroleum products rather than passing it on to the people on a regular basis. The Government should charge minimum possible percentage for service charges and should not make it as a source of revenue generation.

The linkage of petroleum prices with the international oil rates is also unjustified, because Pakistan is not purchasing oil on the basis of daily market prices. The oil supply is based on previous agreements when the cost of oil in international market ranged between 20 to 30 dollars per barrel.

Prime Minister Shaukat Aziz should better shun his banker’s approach and start taking care of the public interests. It’s high time that the public should be saved from this unabated broad daylight robbery of the Government and the petroleum companies. The consumer bodies should also take up the issue with the Government seriously to put a stop to perpetual exploitation.●