October 01, 2005
Islamabad: Consumer Rights Commission of Pakistan (CRCP) has condemned the recent unprecedented spate in petroleum prices by Oil Company Advisory Committee (OCAC) and has termed it a heavy blow to the poor citizens and consumers. The analysis done by CRCP has revealed that petroleum prices have increased at an average of 71.24 percent since January 2003. During the same period, per capita income grew at the rate of 13.5 percent only. The spiral impact of petroleum prices on other consumable items and transport fares coupled with the scare economic resources will make the lives of the 33 percent population terrible who are already living below the poverty line.
CRCP has termed the mechanism for determination of petroleum prices questionable and unjustified. Only oil marketing companies (OMCs) have been given the sole authority to determine the prices according to the prescribed formula and all other interests groups like citizens and consumers groups, transporters, industries etc. have been excluded. OMCs and government often forward the soaring international prices as sole reason for increase in domestic oil prices, but independent analysts are of the opinion that government and OMCs are still amassing Rs20 in addition to the excise duty of Rs0.88 per liter. On 1st September 2005, the petroleum prices were increased on the pretext that in international market the price of crude oil was at its highest ever, $70 per barrel but now when the prices has come down to $66.57 per barrel in international market, there is no justification for further increase.
CRCP’s analysis of petroleum prices has revealed that in January 2003, the price of petrol was Rs32.50 per liter which is now available at Rs56.29 per liter showing an increase by 73.20 percent. Per liter high speed diesel (HSD) and light speed diesel (LSD) were available at Rs21.14 and Rs17.60 in January 2003 which is now available at Rs34.18 and Rs30.97 showing an increase by 75.20 percent and 75.96 percent respectively. During this period, prices of high octane blending component (HOBC) and kerosene also increased by 72.39 percent and 58.79 percent respectively. On the average the petroleum prices increased by 36.66 percent since January 2005.
CRCP demanded to take back the decision of increase in petroleum prices and to all fairness to the consumers and citizens, representation of all stakeholders must be ensured in determination of petroleum prices. Like gas, petroleum sector should be included in the ambit of OGRA (Oil and Gas Regulatory Authority) to determine petroleum prices. CRCP also demanded the selective subsidiary for public transporters so that the burden should not pass on to the poor commuters.
CRCP Deplores Unjustified Increase in Petroleum Prices