Friday October 15, 2021

Stalemate

September 18, 2021

This refers to the letter ‘Fuel bomb’ (September 17) by Engr Asim Nawab. The price of crude oil in the international market has surged to around $73 per barrel (Brent) and is expected to increase further. Keeping in view the rising trend, there is justification to implement a sizeable increase in petroleum prices. However, the government decided on a modest increase but it does not allow a full recovery of the cost. The end result is that the government will end up borrowing money. The borrowing shall entail interest cost along with harsh conditions, and thus a higher burden will ultimately get passed on to the people. It is, therefore, advisable that the government increases the price significantly to offset the rise in international market, lest the people suffer more through borrowings. Of course, any increase in price hurts the people, particularly the lower class.

One thinks that the price of petrol be raised to Rs150 per liter while the rise in price of other products like diesel, kerosene etc should be much less. Private vehicle owners can afford to pay higher price of petrol while those using public transport be less burdened by allowing smaller increase in the price of diesel and kerosene. To facilitate the middle class, the government should certainly improve mass transit systems.

Huma Arif

Karachi