Hike In Fuel Prices

The Oil and Gas Regulatory Authority (OGRA) has suggested an increment in the price of petroleum products by 3.2 percent for January 2020. The final decision lies with the Finance Division, who will decide whether or not this increase will be implemented. There are certain aspects that the government might need to keep in check before implementation. The consumers are already facing the burden of inflation in this country, with costs of living going up and with salaries barely managing to keep up. In such a scenario, the rise in the prices of petroleum products not only means that the costs of production will go up but products will also become costly for consumers to buy.

The implementation of the increment will mean a lot of hue and cry from the producers and the consumers in this country. The government is already trying to provide subsidies to a lot of producers in the country, however, the rising costs balance the equation. Several of the consumers also shifted to using petrol as opposed to CNG due to its wide shortage in the country. The increase in its price will impact them, adding another group agitated due to the policies of the government.

The recent survey by Gallup highlighted how the populace believes that not corruption but inflation is the biggest problem of the country right now. With such a scenario at hand, it is important to provide relief to the consumers especially when the Pakistani rupee now stands at a better position in the market ever since the government decided to depreciate its value. At the same time, to avoid market forces from influencing these prices, the government can also work towards finding local means for the production of petroleum products that are largely being imported into the country.

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