Fuel prices

Published April 19, 2025

THE government decision not to decrease fuel prices is disappointing. It recently announced reduction in electricity tariff, but that came at the cost of downward adjustment of fuel prices.

The government announced a 15 per cent reduction in electricity unit prices under seasonal tariff adjustments. The move was aimed at boosting consumption from the national grid, and providing some relief to financially struggling households.

The benefit reportedly covers about 40.3 million consumers, primarily 35 million residential users. However, this reduction came at the cost of another long-promised relief — a cut in fuel prices, which are normally adjusted fortnightly based on international markets.

No such adjustment was made even when the global oil markets saw a downward spiral. The government at the time had stated that the benefit would instead be reflected in electricity bills. But that has not fully materialised.

Electricity and fuel are being wrongly bundled together. More than 50 million people rely on fuel daily, and they deserve direct relief.

The government must ensure that the benefits of international price fluctuations are transparently and fairly passed on without trading one off for the other.

S.M. Arif
Karachi

Published in Dawn, April 19th, 2025

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