9% Increase in Petrol Prices / An Unfriendly Step by PML N Government

9% Increase in Petrol Prices / An Unfriendly Step by PML N Government: On the recommendation of Oil and Gas Regulatory Authority (OGRA), Government of Pakistan has increased the prices of petrol effective from March 1, 2018 based on existing tax rates and import prices reported by Pakistan State Oil (PSO). The government declared an increase of Rs. 3.56 per litre in petrol which will be sold at Rs. 88.07 per litre, diesel (HSD) by Rs. 2.63 per litre equaling to Rs. 98.45, Kerosene oil by Rs. 6.28 per litre and Light Diesel (LDO) by Rs. 1 per litre selling at Rs. 76.40 per litre and Rs. 65.30 per litre respectively.

Oil prices are revised on the last day of every month and government has increased the price of petrol for the third time in the last three months. This price hike affects the rate of inflation since petroleum products are widely used in the transport and agriculture sectors. Oil is a life line of the commercial hubs, industries and the public in general. Ousted prime minister Nawaz Sharif kept the prices unchanged for almost four years where as current the PM Shahid Khaqan Abbasi is keeping the rate of petroleum products on gradual increase. It appears as if the PML-N government is bent upon aggravating the situation by destroying the already drowning economy and presenting the citizens with highly demotivating and unfriendly decisions. They are not considering the fact that the “Fuel price escalation” effects the “Food price” of a common citizen, pushing him and his family further down the abyss of poverty and hunger.

The government official and advisor to the Prime Minister on Finance, revenue and economic affairs Miftah Ismail previously justified this increase by claiming that the prices of petroleum products in Pakistan are still lower than in other neighboring countries like India, Bangladesh and Turkey. It is further maintained by the current OGRA statement stating that the increase was imperative to balance the effect of fluctuation in international oil prices and that of the rupee against US dollar during the month of February 2018.