THE caretaker federal government has made adjustments to fuel prices, notably reducing the cost of petrol by Rs8 per litre for the current fortnight. Consequently, the price of petrol has decreased from Rs267.34 to Rs259.34 per litre. In contrast, the price of high-speed diesel (HSD) has been maintained at Rs276.21 per litre, with the decision justified by an adjustment in the exchange rate at Rs1.50 and a premium of $5.30 per barrel.
In the first place, there is general perception and widely so that both the Government and the Oil and Gas Regulatory Authority (OGRA) play foul when it comes to passage of due relief to domestic consumers in the wake of reduction of oil prices in the international market. Previously, it was argued that the entire relief could not be passed on because of fluctuation in the exchange rate and adjustment of Petroleum Development Levy (PDL) but now that the rupee is gaining strength against the dollar and PDL has reached its zenith, the Government has withheld the relief in the case of HSD and also maintained old prices for Kerosene oil and LSD. Secondly, the prices of oil have come down substantially during the last few months but no trickledown effect is visible mainly because of the indifferent attitude of the authorities concerned. This is despite the fact that assurances to this effect were given by none other than the interim Prime Minister and the Punjab Chief Minister and the issue was also discussed at the highest forum of the Special Investment Facilitation Council (SIFC). Transporters are resisting demands for a proportionate reduction in fares while manufacturers and service-providers are also not willing to pass on the benefit of reduced cost of doing business to the people. This amounts to sucking blood of the anaemic general public and a mockery of governance.
