The government has announced reduction in prices of petroleum products by Rs3 a litre on all denominations. But gas prices have been increased. It was expected considering the fact that crude oil prices are at their lowest in six years in international market, people would be given full relief. But government has failed to pass this relief to the masses. Massive reduction reported in oil products but government has not passed complete benefit to the general public. OGRA proposed eight to twelve percent reduction in the prices but a meager reduction has been made in the prices of petrol.
After the revision in prices, petrol is being sold for Rs 73.76 per litre, diesel Rs 84.04, HBOC Rs 79.79, kerosene oil Rs 57.14 and light speed diesel at Rs 53.56 per litre.
On the other side government has increased the prices of natural gas of various percentages in different categories. By giving peanuts on petrol price government is trying to masquerade the massive rise on gas tariff. Hiding the truth that government has increased unprecedented general sales tax that has been levied on POL products, but federal minister claimed that government has been providing a subsidy of Rs 60 billion to the masses. It is a fact that presently rates of GST and excise duty in Pakistan are the highest in this region. Just to meet the ambitious revenue target and to meet the revenue shortfalls government has made an unprecedented increase in gas prices. Just to hide the failure to widen the tax net government is busy imposing more surcharges on utilities and increasing GST on petroleum products. This unprecedented increase in GST would bring more inflation as manufacturing cost would trigger more troubles for people.
Prices of oil impact directly on the prices of daily use items, transportation and fares but there is no visible change in the prices of these necessities.
Considering the fact crude oil prices are at their lowest in six years, government has failed to pass relief to the masses.