Petrol up?

There are speculations that fuel prices are being increased by about Rs4 a litre from March 1. There is absolutely no justification for this increase unless the government is thinking of imposing some additional taxes.
Orders for petroleum products are placed and payment made normally two to three months in advance. Hence the petrol that will be supplied to consumers in March 2015 was purchased at a price prevalent at that time, which was around $50 a barrel. This price is still 55 percent less than the peak of about $110 it touched six months ago. Last week registered an upward trend and prices crossed the $60 mark but again the price per barrel has come down. With petrol price at Rs70 a litre, the government is still making profit as it has not lowered the fuel price to 50 percent of the peak level of about Rs110 per litre. The government is requested not to increase petroleum prices. Instead it should hold on to the current prices till it crosses the $75 per barrel mark. The profit generated can be used for other development purposes such as education, health and infrastructure.
Cdre (r) Sajjad Ali Shah Bokhari
Islamabad