Wednesday, September 17, 2008 In a response to the fall in international oil prices, which have now plummeted to $91 a barrel, the government has finally altered the price of fuel products. But, rather than passing on the benefit of the fall in prices to consumers, as it had passed the burden when global rates soared, it has raised the price of high speed diesel, light diesel oil and kerosene by Rs3.5 a litre. While petrol prices have come down by Rs5 per litre, this will benefit only a relatively small section of people who use petrol to run their vehicles. The increase in diesel and kerosene, used for cooking by most of the country's poorest citizens, will mean inflation remains unchecked for them. The higher cost of diesel will push up transport, resulting in many items including vegetables and flour costing still more than before. The government had previously argued it had not been transferring the benefit of the international oil price slump to balance out the huge subsidy it still offered on diesel products. This latest measure brings that subsidy down from Rs 4 billion a month to Rs2.5 billion. For the government's stressed economic managers, this comes as a relief. For people, the pressures of life increases still more. Already, we hear daily of families doing without onions, without pulses, without other items that once came regularly into kitchens. Their plight now may well worsen.
The country's managers need to think about the potentially explosive impact of continuous galloping inflation. The humanitarian impact of a situation where families can barely feed themselves from day to day is already evident. But the price rises, combined with an economic downslide that is eating into jobs, may have still more negative social effects in the future. The rate of crime, of social unrest and frustration is increasing everywhere. These are factors the government needs to keep in mind. While its economic problems are very real, it needs also to keep in view the broader picture. The perception that the government is working against the interests of people rather than for them will eventually weaken it. This will hold true even if, as a result of cuts in subsidies, its own coffers grow. Elected leaders who occupy their current position because of the votes of people need to be aware of this and keep one hand on the pulse of people at all times. Losing track of their mood and distancing themselves from new difficulties imposed by increases in the price of fuel could prove disastrous in the longer run, even if it helps solve an immediate problem.
Reference : The news Paper
1
Warning :The information presented in this web site is not intended as a substitute for medical care. Please talk with your healthcare provider about any information you get from this web site.
Petrol and politics Of Pakistan
