A surge in petroleum prices has become a monthly phenomenon and this month’s increase has pushed the prices to the record highest level in the history of Pakistan. The news has given a new jolt to the already distressed consumers who are at the brink of collapse owing to the back-breaking inflation.
The current surge in fuel prices is likely to bring a massive flood of commodity price increase. It is the most painful aspect of governance that every month the government increases the petroleum prices which raises the cost of production in a number of ways. With the increase in oil prices, the cost of basic commodities rises as well.
This cumulative rise in prices makes the life of middle class people more miserable. On the other hand, inter and intra-city transporters increase fares and the cost of export and import transportation of goods goes up. The Finance Ministry has its own stereotype, lame justification, saying the decision was taken to avoid additional burden of Rs 12 billion on the national treasure due to increase in oil prices in the international market. Sources said if the government did not increase the prices in line with international market prices, it would have to provide additional subsidy of Rs 12 billion.
Subsidy could shift additional burden to the fragile economy of the country. The recent announcement of price surge in petroleum products by Oil and Gas Regulatory Authority (OGRA) has shocked everybody. The energy crisis has put a huge question mark on Pakistan’s economic and political future.
After the merciless increase in electricity tariff rates, LPG and CNG prices, the recent increase is being considered as the last straw on a camel’s back to break his spine. There has been an overnight flood of price rise that has submerged every initiative under the heavy spell of inflation. The surge in petrol prices pushes the whole consumer goods and services to new heights always leaving the daily breadwinners poorer than yesterday.
The petrol pumps of the city on Sunday stopped the sale of petrol for the imminent price increase. “The agents know very well that when they will display the ‘out of stock’ banner at their outlets, the consumers will be psychologically inclined to pay the higher price to get their vehicles refilled,” said a motorcyclist. “I visited all the stations in the area but they say they are unable to refuel,” he remarked.
There are reports that rickshaws, taxis, vans and all other local transport stakeholders have arbitrarily increased the fares overnight on all traffic routes. “The matter is not that the increase is diverted to public; they, under the pretext of petrol prices, have increased substantial amount of money in terms of fares,” said a commuter.
“There is no law to protect the consumers from the unjust fare increase by the local transporters,” said another passenger at a bus stop. “Where does the government want to take the nation?” he questioned. An analyst said, “The government is levying more than Rs 30 per litre taxes and duties on petrol.
If the government sells petrol ‘no profit no loss basis’, it will cost less than Rs 50 per litre to the public”. Take the example of NATO oil supplies to Afghanistan by our government which is charging around Rs 40 per litre from them,” he said. A local petrol pump owner who looked worried said, “This price mechanism is beyond our control. We are charging higher prices because we purchased at the higher price.
Our commission is unchanged; these are the international market forces that are responsible for it. They are profiteering out of the public miseries. We have to bear the extra expenses to stay in business,” he argued. An office clerk working in a private company said, “I used to go to office by van paying Rs 30 for daily excursions that cost me Rs 900 per month. I can no longer manage it anymore in my salary of Rs 8,000. I have decided to purchase a bicycle for my daily trips,” he said.
There are reports that grocery shops in the city have also increased their retail prices, saying transportation charges from Sabzi Mandi to their outlets have increase overnight.
The petroleum price surge is likely to bring more bad news in the coming days from all the sectors of production and local services that have announced to hold meetings to adjust the prices of their products and services to keep themselves in line with the recent market adjustments which simply mean more price hikes in the country.