In response to the price change summery by Oil and Gas Regulatory Authority (OGRA), the finance ministry have made following changes to the prices of different petroleum items.
Petrol price was decreased by Rs. 0.25 per litter, Diesel Price was decreased by Rs. 2.40, light speed Diesel price was decreased by Rs. 2.90 and kerosene oil price was decreased by Rs. 0.90 or 90 Paisas Per litter.
Hence after all these changes the petroleum prices of December 2019 were set to figures as follows in Pakistani Rupees.
Light Speed Diesel: 82.43
Kerosene Oil: 96.35
What do you feel about these recent petroleum price changes?, do not forget to share your thoughts in comment section below.
As per trend, last few months as well, the petroleum prices declined in international market. Pakistan’s Oil and Gas Regulatory Authority (OGRA) also recommended that Pakistan can reduce petrol and diesel prices by at least six rupees. Now OGRA is main authority which recommends the petroleum prices in Pakistan, so when it is say we can reduce price by 6 rupees or more, we absolutely have margin to do that.
Normally, when OGRA decides a price and it goes to Prime Minister office for approval, it is accepted as it is. But this time our beloved PM Nawaz Sharif chose not to pass on the benefit to people of Pakistan, so instead of accepting the OGRA’s price reduction of 6 Rupees and few Paisas to petrol and diesel, he just chose to reduce price by only 3 rupees for both.
People already were giving enough sales tax on petroleum, so this stunt by PM resulted in increasing the already excessive sales tax on petroleum prices. So people are forced to give about 27% of sales tax on petrol when the standard rate is nothing more than 17%.
Most bothering thing is these politicians, like the ones in power do not want to pass on any relief to people of Pakistan, even when they can. Along with other ever growing taxes in PMLN (Pakistan Muslim League – Nawaz) Era, not choosing to go with recommended fuel prices will put further burden on People of Pakistan. Fuel prices impact prices of each and every thing in the country and such decision do not bring any good to people’s lives.
Chief Justice Iftikhar Muhammad Chaudhry along with two other members of bench took notice of recent electricity price increase. He asked government to submit the details of tariff to the court, further more he mentioned that the poorest of poor have been badly affected by the recent blunt power price hike from Pakistan Muslim League – Nawaz (PML-N) led Government of Pakistan.
On other hand an advocate, Masiur Rahman Chaudhry have filled a petition against the electricity and petroleum prices increase by government of Pakistan in Lahore High Court (LHC). According to Advocate Masiur Rahman the prices of petroleum prices are lowering all over the world, so its illegal to increase the price of petroleum products in Pakistan at this moment.
Even Indian government have lowered the petrol price just yesterday, so this price hike from Pakistan was utterly disgusting measure to bury the people of Pakistan under more difficulties which they already have in good quantity.
In his couple of tweets Imran khan have also condemned the recent petrol/electricity prices hikes by PML-N government. Tweets are as follows.
PMLN govt has betrayed its mandate as it has been bombarding ppl with price hikes; devaluation; spiralling inflation since coming to power.
Second one from Imran khan goes like
PTI rejects the latest elec/fuel price hikes. We r planning countrywide protests as well as in the assemblies.
So chairman Pakistan Tehreek-e-Insaf (PTI), former cricketer and a social worker Imran Khan rejected the fuel/electricity prices hike by government and explained how PML-N betrayed their own people who had voted them in to the government of Pakistan.
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Another petroleum prices hike was took in place on Saturday in Pakistan to keep up with the price hike going on in the International market. According to government these price hikes were to keep up with International market and they can not provide any subsidies to people any more. I doubt that they were providing any subsidies to people in recent past.
This is second major hike in petroleum prices in time period of just few days. As soon as this price hike came in place the price to diesel approaches to the Rs 100 mark with its current price of 97.31 from old price of 92.89 which was set few days ago after a previous raise in price. The Light deisal price was took up Rs. 9.32 making it cost 88.30 per litter to the consumers. Kerosene oil is now costing Rs. 89.70 with price hike of 5.60. Petrol price also headed to the 88.41 with the increase of Rs. 4.85
While the current political party in power (PPP) prepares its reasons for this hike in prices as we know that one factor of this impact of local petroleum prices is continuous deterioration of Pakistani currency against US dollar and other International currencies. This deterioration only picked speed after current political party in power Pakistan Peoples’s Party (PPP) came into power. The Pakistani currency declined in just first six months of power period of PPP was equal to the currency decline of more than 12 years before that.
So from start PPP have not been able to manage things well and impacted the economy real badly. Coming back to the current petroleum prices issue, when PPP talks of not being able to giving any subsidies on petroleum prices on same time they have in-effect taxes on products. GST is already being taken on all products adding a good amount to price and also another charge called petroleum levy is also in place, which further worsens the prices.
Government which is already charging the taxes on a product can it say they are no more able to provide subsidies. In terms of overall development of country if these and other taxes would have been being put in some good use, the people of Pakistan would have been much more happy and comfortable with that. But no development anywhere near that level of collections is being done. Situation with Electricity and Gas shortages is being worsen and economy is doing no good.
Another type of fuel which costs less called Compress Natural Gas (CNG) is also facing the shortage in this country only because of the defective policy of government of Pakistan.
Prices on all kind of commodities like Petroleum products and Electricity being raised blindly, directly impacting the production and transportation costs of every thing else. These blind hikes in the prices will play their part in further worsening the economy.