The Prime Minister has earlier stated that the decision on an increase in POL prices is taken by Oil and Gas Regulatory Authority (OGRA) which is autonomous, but now the PM is assuring the MQM that increase in the POL prices will be reviewed. I dont understand why the OGRA was incorporated when the major business of crude oil imports, oil refining, natural gas distribution is owned by majority of federal government owned companies. Regulatory authorities are required when a free market mechanism is practiced and all business is managed by private sector.
Moreover, OGRA is filled with bureaucrats retired from the government and there is hardly any representation in its board of members from NGOs working for the rights of the consumers. Most of the decisions taken by OGRA are for the benefit of the government and the companies in the oil and gas business. If OGRA is not a part of the government, why is the government spending millions on advertisement in the print and electronic media justifying an increase in the prices of POL products?
The consumption of petroleum products is possible to reduce if the government can provide a decent and comfortable public transport system and improve the railway which is the mass transport system in the world. The fact is the government wants to narrow the budget deficit to a sustainable level and maintain its relationship with the IMF and the other international financial institutions. The government is collecting a huge amount of taxes from petroleum and lubricants business at various stages from importers of crude oil companies, oil refineries, lubricants manufacturers and POL products marketing companies.
Due to governments failure to collect direct taxes from its elite class, it is heavily dependent on indirect tax system for revenue. The people are already facing the pressure of inflation, finding it very difficulties to make ends meet. I wonder why the government is reluctant to collect taxes from agricultural income tax, landlords, real estate tycoons and take action against the written-off loans of over 280 billion rupees.
Instead of privatising organisations such as PIA, Pakistan Steel, PECO and others which are squandering tax-payers money of over Rs 280 billion every year, it is subsidising them. It is time that the government should subsidise the food products and POL products by collecting the taxes and recovering the written-off loan so that the people can have some relief in their life.
S T HUSSAIN
Lahore
