September 23, 2000

Islamabad. Consumer Rights Commission of Pakistan (CRCP) while commenting on the recent increase in petroleum products up to 24% condemned the government since its J policy of linking prices of petroleum products with international market has not been consistent. Government has increased prices of petroleum products to the tune of 30% since December. However it does not pass on the benefit of reduction of prices in international market to domestic consumer.

CRCP stated that it is not merely an attempt to level the prices but also an attempt to increase the revenue. Government is not only earning 15 % GST on petroleum products but also generating revenue to the tune of Rs. 12 billion on motor spirit i.e. regular and super patrol which is largely used by the domestic consumers for daily commuting. It is also dismal to note that when prices are reduced in the international market no benefit is passed on to the consumers. It is the sheer violation of the whole rationale of free market economy and amounts to cheating the citizens and consumers of Pakistan.

CRCP further stated that the justification given by the government to increase the prices of Kerosene oil to 24% in order to stop adulteration of Kerosene oil in other petroleum products is an admission of inefficiency and corruption on the part of administration which instead of making itself efficient has made the consumer to suffer, the most pathetic aspect is that poor consumers largely depend on kerosene oil for their daily cooking and other power related needs particularly in the rural areas and this massive increase in kerosene oil will further curtail their purchasing power and kitchen options.

CRCP voiced its concern over a series of price increase, it is the sixth price increase after the budget, namely, 70 paisas increase in diesel & petrol prices, 15% increase in gas prices, increase in electricity charges due to withdrawal of 15% subsidy, followed by 20% increase in telephone tariff and then 8% increase in electricity tariffs and now from 1.5% to 24% increase in various petroleum products. These increases are highly condemnable since most of them are not even within the legal frameworks.

CRCP impressed upon the Government that accounts related to petroleum products should be made public so that citizens and consumers could probe into it to ensure that the present increase is only aimed at leveling of prices and not as a source of additional revenue for the government for which it is not entitled before the next budget.