Midnight hike

In an unprecedented midnight decision, the government raised the prices of petroleum products by plunging the nation in a fix wondering as to what lies ahead for them at the hands of pestering inflation and a steep nosedive in their purchasing power. Petrol price now stands at Rs145.82 with the new raise of Rs8.14 per litre. This shock and awe tale at 1.30 AM has unnerved the economy and paints a gloomy picture apparently as an aftermath dictation of IMF conditionalities.

This raise has come not only as a surprise but also in utter disgust. The government earlier this month had refused to take on an OGRA input for another raise, and had sent in a consoling message. Perhaps, it was a time-buying tactic as the state machinery was preoccupied with the TLP uprising on the streets, and the government wanted to avoid public backlash on hike in POL prices. Thus, an announcement on Thursday midnight shows the confusion prevalent in the decision-making rank and file, and the lack of options to keep turning the wheel of the economy.

With another raise in prices of petroleum products, the common denominator for all kinds of energy products is well over Rs110 per litre. This is a record upsurge in itself. Though the government has a reason to escalate prices, as petrol has soared to $86 per barrel in the international market, it is another story of mismanagement that there is no strategy at hand to deal with a capitulating rupee against the greenback. The way out is only through slapping an embargo on all luxury imports, including vehicles, electronics and cellular phones, and putting down the foot against the donor’s blood-sucking terms.

What hurts more is the stereotype tirade of government spokespersons who never miss an opportunity to remind the masses that prices in Pakistan are still cheaper than many of the neighbours. This is irritating. Moreover, it is believed that Pakistan got a lifeline of $3.5 billion recently from a compatriot Arab friend, and if so is the case why is the rupee not strengthening and why do we have to pass on the oil spiral every time to the consumer? This deserves a serious thought.

Published in The Express Tribune, November 7^th, 2021.

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