February 3, 2005

Islamabad. Consumer Rights Commission of Pakistan (CRCP) has denounced the recent decision of the Oil Companies Advisory Committee (OCAC) to raise the petroleum prices by Rs2 per liter despite downward trend in international market prices. It said that the recent increase would further gear up increase in the prices of many consumer items and transport fares. The burden of this move will particularly affect the poor buyers and marginalized consumers. This was stated by CRCP Secretary General, Mian Abrar Hafeez while commenting on the government policy on petroleum.

Mian Abrar Hafeez stated that government policy was thoroughly inconsistent regarding linking prices with international market. When the prices increases in international market, government finds it easy to increase prices domestically but it is seldom observed that government have taken a reverse shift to decrease the prices to follow the international market.

“It is ironic that in last year petroleum prices marked an unprecedented 25 % increase and it was hoped that government will keep the prices stable for current year to give some relief to the citizens, keeping in view the recent decreasing trend in international market. But it seems that government is bent upon loosing a hell of price hike on consumers. When we compare the price of petrol with the last year, it is pitty that in one year it has jumped Rs9 per litre. Petrol was selling at Rs33.78 per litre in January 2004 as compared to Rs42.39 per litre in February 2005. Similarly prices of diesel went up from Rs22.78 per litre to Rs27.16 per litre during the same period. As a whole the prices of different oil products like HOBC, LDO and Kerosene went up from 15 percent to 23 percent from January 2004 to January 2005. Therefore the recent price hike is totally unjustified” he deplored.

While commenting on the impacts of OCAC decision, Mian Abrar Hafeez said that price hike was a shock for consumers, who were already burdened with exorbitant and arbitrary price hikes of essential items, public utilities, etc. He said that it will add to the miseries of marginalized section of society in particular. He said people are loosing faith in procedure of price determination.

Mian Abrar Hafeez demanded that government should not make petroleum as a source of revenue at the cost of consumers. He further demanded that Oil and Gas Regulatory Authority (OGRA) should have the power to determine the prices. This is important to ensure that interests of all stakeholders are watched whereas OCAC is biased towards corporate interests.