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WEEKLY
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| Falling oil prices |
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Monday, September 08, 2008
Oil prices, which have been sliding down over the past few weeks from their July high of $147 a barrel have continued to tumble. A weakening global economy is seen as a factor in this. The latest slump, to $110 a barrel, is reported to have been triggered by fears regarding the damage Hurricane Gustav, sweeping across parts of the US and the Caribbean, could inflict on oil installations and the energy infrastructure. Some reports suggest the OPEC oil cartel, which produces 40 per cent of world oil, may cut production if global rates fall further, to under $100 a barrel.
Today, every citizen in the country is facing the brunt of unchecked inflation. These hikes hit especially hard during Ramazan, when many household budgets are stretched to breaking point. The inflation is largely a consequence of the successive increases in the prices of PoL products seen over the past few months. Rates of petrol, diesel and kerosene – the fuel used by the poorest of the poor — have been pushed up higher and higher, bringing with them an increase in the transportation costs of nearly every commodity. Of course it is consumers who are forced to bear the biggest burden as costs are passed on to them. According to the Federal Bureau of Statistics’ consumer price index, the inflation in the rate of food items soared to a record 33.81 per cent in July. Wages of course remain static. Even WAPDA’s ability to produce power has been hit by the higher rates of oil, leading to a worsening power crisis.
We have been told the price hike is the result of global rises in oil rates; that the government as such can do nothing about it. The prime minister has lamented the hardships this international situation has brought for people and promised relief. But now that world prices have begun to come down, surely we can expect some of the benefits to be passed on to these same people. So far there has been no indication of this. Indeed some accounts state yet another petrol price rise may be made. The government’s primary duty is to safeguard the rights of its citizens. Today, people everywhere are literally unable to survive because of the inflation. We heard new stories of the impact of this reality with each passing day. We have over the past weeks and months suffered the results of the increase in global oil prices. It is now only just that the benefits of the current slide should also be passed on.
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ISSN 1563-9479 
