For the last three months, petroleum prices in Pakistan have remained unchanged. On the other hand, the price of crude oil in the international market has reached $66-67 per barrel (previously, it was $50 per barrel). According to our government, it is providing relief to people by not increasing petroleum prices. This step, however, is resulting in the loss of revenue. This strategy of providing relief is not wise.
To make up for this loss, the government will have to resort to domestic and external borrowings which will eventually create a huge burden on people. If by not increasing petrol prices the government is incurring huge financial losses, it should increase the price of petroleum products.
Erum A Baig
Karachi