To cope with hefty oil prices and to steer the country out of economic challenges and inherent structural imbalances, the government has decided to take measures that have never been taken before.
The incumbent government would devise a newly proposed oil policy under a deregulation mechanism, whereby market forces would have the authority to revise the petrol and diesel prices. The policy will be effective from November 1, 2022.
This time, the government decides the petrol and diesel prices whilst furnace oil Price is deregulated just like Hi-Octane.
In a meeting, the executives of oil refineries, Minister of State for Petroleum Musadik Malik, Energy Task Force Chairman Shahid Khaqan Abbasi, and officials of the Oil and Gas Regulatory Authority (OGRA) reached an agreement.
Sources have revealed that it is agreed between both sides that the Pakistan State Oil (PSO) and local oil refineries would have competition in the market.
The government took this step first to get rid of the oil price-related fuss to resuscitate their dwindling trust among the masses. And; secondly, analysts have translated this policy would inherit a positive effect on the country’s crumbling economy.
Price Revision After a Week?
As per sources and media reports, the government is mulling to revise the petrol prices after a week, yes, you heard that right, after EVERY seven days. The same sources stated that the government would adopt this policy under the International Monetary Fund (IMF) condition to get the bailout package.
Petrol Price in Pakistan
After the latest reduction, petrol price in Pakistan is currently Rs. 227.19 compared to the old price of Rs. 230.24. Meanwhile, the new Diesel rate is Rs. 244.95 instead of Rs. 236.
And the new rate of Kerosene Oil is Rs. 230.26 against Rs. 211.43. Light Diesel Oil now costs Rs. 201.07 compared to the previous rate of Rs. 196.45.
What is your take on this possible policy by the current government? Will it be beneficial for the masses or not? Share your thoughts in the comments section.
In my view, it is a good decision, however, I hope that a more sustainable policy is observed because it is an odd phenomenon that every item’s price goes up in response to fuel prices but it never comes down and yet these very actors raise hue and cry over unfairness of the government. Perhaps they need to be punched into reality that people form the government and if people become greedy then they would influence the government.