Yet another bombshell

The federal government has increased the price of petrol by a whopping 2.9 percent. The other petroleum products, including kerosene oil that was raised by 4.8 percent and high octane blending component (HOB), by 7.3 percent. The government, however, did not raise High Speed Diesel’s price on the ground that it was used by transporters. After talks with coalition partners and provincial governments, a decision has been reached to give subsidy on high speed diesel till June. However, what is shocking is that concurrently, the price of CNG, LPG and electricity has been raised which amounts to inflicting a great misery on the masses. While the electricity price has been raised by Rs 3.03 per unit, those of CNG have been jacked up to Rs 1.77 per kg. This is the second raise in CNG prices in a month’s time, which is ironically imposed by the PPP-led setup that boasts of an agenda providing food, shelter and clothing to the people.

The margin of increase itself is quite large. There is no point in making an increase of 2.9 percent given the state of economy. If the government says that under certain circumstances it has to adhere to such global shifts in the oil market, then it must be asked to explain why it refrains from lowering the prices when the global prices go down. Also the mechanism by which the OGRA suggests the raises to the federal government has been the subject of criticism and for the right reasons indeed. Call it the government’s failure to appoint and maintain the correct financial advisors or its general indifference to the plight of the masses, it seems to be only too happy to approve these frequent raises. In fact the federal government cleverly tried to put a gloss on its unpopular step by stating that the provincial governments must now come forward and share the subsidy with it so that the prices of the oil products can be maintained. The provinces are themselves complaining that all resources and funds as promised by the federal government have not yet been provided to them. And sadly in the midst of these mutual recriminations it is the average man who is suffering.

Even though the price of diesel has not been raised, the impact on the economy would be disastrous to say the least. There is no doubt that the first casualty would be basic food items. Hence, the government’s step amounts to deliberately starving the poverty-stricken masses. Although for the time being, the transporters might not jack up the prices, the fact remains that the general inflationary spiral would eventually affect every other sphere of economy. The raise has been rightly called as the ‘drone attack’ of inflation on the people.