Petrol prices slashed amid growing public anger

ISLAMABAD: The government on Thursday opted for decreasing the petrol prices by Rs7.54 per litre, amid the severe criticism over hiking the fuel rates in the recent past despite the declining oil prices in international market.

A notification issued on this subject by the Oil and Gas Regulatory Authority (OGRA) says the new per litre price for petrol is fixed at Rs264.61. It was Rs272.15 previously.

On the other hand, the high speed-diesel would now be available for Rs285.83 after an increase of Rs1.48 per litre.

The new fuel prices is effective from 12am on August 1 (Friday), as the OGRA reviews the rates twice a month — after every 15 days.

Meanwhile, the decision to slash the fuel prices will provide some relief to the government that is under scrutiny over the sugar crisis which was triggered by allowing sugar exports.

That’s why the sugar prices are still rising despite the earlier agreement to fix the ex-mill rate at Rs165 per kg.

Read more: Govt, millers agree to fix ex-mill sugar price at Rs165 per kg

PURCHASING POWER CRISIS

Rising cost of transportation is further eroding the purchasing power of people, especially those of low-income groups who are worst affected by the unending crisis that erupted after the government started rupee devaluation in 2018.

The move backed by the IMF has an unending series of consequences, as it immediately increased the import bill, thus triggering an unbridled inflation that saw prices of all items skyrocketing.

At the same time, the government focus on revenue generation through indirect taxes mean that the fuel prices are the easiest way to collect money.

With a persistent inability to expand tax net, there are little chances of the direct taxation becoming a priority, which unduly affecting not only the poor but also the middle classes, both urban and rural.