Petrol price-hike: Expecting blessings, receiving ‘curses’

Reaction shows people have lost faith in the government.

ISLAMABAD:

The government’s May Day gift in the form of yet another increase in the prices of petroleum products has further compounded the miseries of the general public, particularly the working and lower middle classes.

The surge in petrol prices would have a seriously adverse impact on the public, particularly on those whose purchasing power has already been dramatically decreased since the People’s Party government took over.

Oil and Gas Regulatory Authority raised the prices of petrol products between minimum 1.8 per cent and maximum 11.8 per cent with immediate effect yesterday, shattering the public’s expectations of some kind of relief in the upcoming budget. “We are frustrated and do not know what to do amid such unprecedented inflation,” complained Shakoor Ahmed, a labourer whose daily wage is between Rs200 to Rs250, that too if work is available.

“I have five children at my native village, Mianwali, and can hardly send them a monthly sum of Rs3000 for their expenses. My family is in a very difficult situation as all the children are dependents,” he added.

Shakir Khalil, a school teacher, said that he was shocked to know the market prices of essential necessities.

“We have not even been able to afford vegetables and pulses for some time now as the ever-increasing prices of petroleum products
have pushed inflation to extreme levels.”

“We often remember Pervez Musharraf’s era. Life necessities were affordable as compared to today’s skyrocketing prices”, he added.

Aslam Wani, another citizen who also lamented the government’s decision, said “The government’s cruelty in the form of this cursed daily increase in petrol prices has traumatised the people. We have now lost all our hopes from the government, political parties and opposition groups!”

“The richer classes have no realisation about how the poor deal with inflation, unemployment and injustice,” said Ayesha Khan while shopping at a weekly bazaar, where cabin owners have also begun increasing prices using the oil price hike as justification. “Three years ago,” she said, “we used to buy all our kitchen items for Rs1000 a week. Now, the same items cost about Rs4000!”

“I am surprised at the pathetic state of the public who does not react to such policies. Ayub Khan had to pack up and go because of public reaction to 50 paisa per kg increase in the price of tomatoes,” recalled an elderly man Ayaz Khan. He said people gave a tough time to past governments whenever there was a mid-year mini budget.

Waheedullah Khan, a transport owner in Islamabad said that transport fares would definitely increase within the city to match petrol prices. According to him, the fare could be increased by Rs2 from stop to stop and by Rs5 for longer distances.

Talking to The Express Tribune, Senator Prof Khursheed Ahmed called the fresh increase a ‘drone attack’ by the government on the poor masses. “The country is being pushed toward economic and political turmoil and people have to take to the streets to counter these policies”, he suggested.

The senator said his party would resist such policies in and outside of the Parliament. He condemned the PPP government for its failure to bring any pro-poor and pro-growth policies in the last three years. He predicted that the new budget would be yet another curse rather than a blessing for the people.

Background and Justification

OGRA announcement to increase prices of petroleum products by 12.9 per cent has pushed the prices of these products to an unprecedented level. The prices were raised after the prime minister’s approval of OGRA’s summary with immediate effect from May 1.

Addressing a press conference, OGRA Senior Executive Director Syed Jawad Nasim said that the prices of petroleum products were increased because of the international hike in prices of the same. He added that the price of one barrel of oil in the international market increased from $120 to $128 during April.

According to him, the government has given subsidy of Rs35 billon on petroleum products so far, of which Rs9 billion was the amount of subsidy given in April alone. He said that the government has also frozen the petroleum levy on petroleum products. However, he noted that the rate of GST increases accordingly with the increase in prices of petroleum products. He maintained that petroleum prices in Pakistan are still comparatively lower than prices in India and other neighboring countries.

Published in The Express Tribune, May 3^rd, 2011.