December 3, 2003	Wednesday	Shawwal 8, 1424

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ISLAMABAD, Dec 2: Former prime minister and Pakistan People’s Party chairperson Benazir Bhutto has criticized the government’s decision to raise petroleum prices.

“It is yet another unnecessary burden on the working and middle classes,” she said in a statement issued by the PPP media cell here on Tuesday.

“Those who are used to free electricity and car petrol fail to recognize the hardships faced by the salaried and working classes due to increase in petroleum prices,” Ms Bhutto said.

She said it was one of the characteristics of an unelected and unrepresentative regime that it was oblivious of how difficult the life was for ordinary people.

This week, the Oil Companies Advisory Committee raised the prices of almost all the petroleum products by about 40 per cent per litre, from 50 to 69 paisa.

The PPP chairperson said it was shocking that the price of even kerosene oil, which was mainly used by the poor people for fuel purposes, had been raised. The per litre price of kerosene oil went up by almost 20 per cent. Light diesel price also increased.

Petroleum rates serve as an informal method of tax collection. The PPP government had decided to pass on petroleum price benefits to the consumer. However, after the PPP government was overthrown in 1996, anti-people policies were adopted. Consequently, when international price of petroleum came down, it was not passed on to the consumer. But, when the price went up, the consumer was hard-hit, Ms Bhutto said.

Pakistanis pay one of the highest international rates for consumption of petroleum. The former prime minister called for restoration of true democracy, army’s return to the barracks, and holding of impartial general elections under the Pakistan Human Rights Commission.

She said the PPP and the alliance for Restoration of Democracy were with the masses. She said the hike in petroleum prices would adversely affect the factories and manufacturing industry in Pakistan. She called for immediate reduction in the prices.

OUR REPORTER ADDS: The Islamabad Chamber of Commerce & Industry (ICCI) has urged the government to bring drastic reduction in prices of petroleum products.

In a statement issued here on Tuesday, ICCI president Zubair Ahmed Malik said the reduction in the rates of petroleum products would boost productivity and enable industrial units to be competitive in the international market. “The lack of drastic action to reduce these rates is causing closure of several industrial units and increasing unemployment in the country,” he said.

Mr Malik said the government had formed a task force on power tariff, but its report had not been made public. The task force appears to have made recommendations for a drastic reduction in power rates, he said.

The government has recently come up with reduction in power rates, which is insignificant and will not provide relief to the industrial consumers, he said.

The ICCI president maintained that Pakistan’s power tariff was the highest among the Asian countries. The increase in prices of petroleum products by 50 to 70 per cent per litre will increase the cost of transportation and have adverse effect on agricultural productivity.

The government has levied heavy taxes on the consumers, which amount to 71 paisa per unit, and through Wapda electricity bills, it collects about Rs30 billion under sales tax, withholding tax and power development surcharge. Also, the government charges Wapda 22 per cent interest on loans to the utility, which the authority, in turn, recovers from the consumers. If these levies are reduced, a reduction of 41 paisa per unit will be achieved in the existing power rates, providing relief to the consumers.

At the same time, Mr Malik said, the government must ensure recoveries of outstanding power bills from various public sector agencies. It will not only ease Wapda’s financial burden but also help provide further relief to the consumers.