No end to POL drones

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THE government has once again made substantial Rs 6.82 per litre increase in the price of petrol under its new policy of weekly adjustment in POL prices creating strong resentment among people in all segments of the society.

The weekly adjustment, according to the government is aimed at passing on the impact of international oil prices to the consumers but the fact is that prices are being increased and no actual relief is being passed on to the citizens.

People are now describing the oil prices as POL drones which hit the masses every week but the government is least concerned. The ultimate effect is that transportation and production cost goes up. One cannot object over raise in POL prices in parity with international trend but what is more disturbing is that the levies and duties, imposed on the consumers through oil prices also go up having multiple impact on the consumers.

Since petroleum is so important to industrial sector, a large increase in its price can lead to increase in the price of most products, raising the inflation rate which is declared by economists as public enemy number one and plunges countries into long periods of instability. The policy makers in the government must recognize that given the important role of fuel in the operation of the national economy, once oil prices rise, there would be a domino effect and industrial production cost goes up.

Thus people have reason to worry about inflation resulting from rising fuel prices. We would therefore impress upon the government to revert to the old system of monthly adjustments in POL prices and at the same time permanently fix GST and other levies on the basis of per litre sale, rather than increasing these duties along with oil price, to reduce impact on the consumers.

Courtesy: Pakistan Observer

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