Oil Price Reduction Withheld from Public Relief

ISLAMABAD: Despite a significant reduction in oil prices in the global market, the government has once again decided to spend this savings on development projects instead of providing cheap petrol to the people. The Federal Cabinet decided at a recent meeting that the additional resources from the reduction in petrol prices would be spent on the construction of highway and canal in Balochistan.

The decision comes at a time when the Prime Minister gave the public good news of the reduction of petrol prices, but shortly afterwards the decision was stopped. Earlier, the government did not benefit from the drop in oil prices in the global market and used the money to provide temporary relief in electricity prices.

Experts say that when oil is expensive, the government raises prices immediately, but when cheaper, it delays or avoids the benefit of the public. In the last two months, global oil prices have dropped by more than 22 %, but in Pakistan, only Rs 2.5 per liter has been reduced.

At present, the government is receiving more than Rs 101 in various taxes and levies per liter of petrol, of which only the petroleum levy rate is Rs 78 per liter. The price of petrol and diesel has a direct impact on the daily life of the common man, as it determines the prices of fuel transport, agriculture and food.

Public circles say that the development of Balochistan is certainly important, but it is against justice to put its burden on every citizen who purchases petrol. Such projects should be completed with federal development budget or provincial funds, not from the pocket of the common man.

Experts demand that the government take advantage of the reduction of oil prices to the public without delay, so that inflation is reduced and people can feel some relief.