THE revision of petroleum prices every month, based on foreign market prices, is wrong. Increasing the prices increases the prices of petrol and diesel already in the underground tanks of retail outlets, giving undue profits to the retailers at the cost of the consumers.

And the Federal Board of Revenue (FBR) does nothing to curb the practice. Prices should be fixed per inputs into the refineries. The purchase price of crudes, plus the refining costs and selling costs should determine the prices of the end products; that price should rule until the next input of crude into the refineries becomes due.

Periods of time for this may be fixed, say three months or four months. The price paid for purchase of crudes should determine the prices of the end products. And, by the way, no one bothers about the prices of other products, like engine oil.

Syed I.R. Kazimi

Karachi

Published in Dawn, February 17th, 2021