ISLAMABAD, May 19: The Consumer Rights Commission of Pakistan (CRCP) has expressed concern over the recent increase in prices of electricity and petroleum products.

CRCP secretary-general Abrar Hafeez while deliberating on the overall impact of price hikes of electricity and oil, said it would have an upward spiral effect on the price index.

The increase, he said, would lead to rise in transport fares, prices of agricultural inputs, and subsequently cost of industrial products.

He termed the cumulative increase of 17 percent in fuel prices and 8 paisa per unit interim increase in electricity as “politically guided rather then in line with the principle of market economy”.

“The price of electricity may go up to 80 paisa per unit shortly,” Mr Hafeez said.

The CRCP secretary-general said the prices of petroleum products were held in abeyance for more than a month to avoid any adverse public opinion on the referendum. “Now the consumers have to pay an accumulative amount,” he added.

On the other hand Nepra (National Electric Power Regulatory Authority) had given an interim increase of 8 paisa per unit without any public hearing, he said.

The CRCP termed the cumulative effect of the price hikes as “unbearable for consumers” and said the increase in utility charges and petroleum products would add to the miseries of marginalized sections of the society in particular.

Mr Hafeez said Nepra should keep in view the interests of all stakeholders. He criticized the decision of Nepra to allowed an increase of 8 paisa per unit in electricity charges.

He said such tariff increase had never helped Wapda, instead it prevented the authority from becoming an efficient organization.

The four consecutive increases in tariff during the last year had cumulated to the tune of around 32 paisa per unit, he argued.

“Instead Wapda budget deficit has risen to Rs26 billion this year from Rs12 billion last year,” Mr Hafeez said.

He said the consumers were paying for the mismanagement of Wapda staff, who had failed to improve its administrative structure and reduce distribution losses.

The CRCP secretary-general remarked that Wapda should overcome its losses instead filing petitions with Nepra for increase in tariff. The backlog of Wapda’s receivables had increased to Rs54.626 billion from Rs43.885 billion at the beginning of fiscal year 2001-02, he added.

He expressed the opinion that the only solution to make Wapda self-sustainable was improvement in its efficiency, administrative structure and reduction of distribution losses.

The CRCP also criticized the recent increase in the prices of POL products and observed that the increase between 3.55 per cent and 17.02 per cent would lead to peoples’ burden directly as well as indirectly.

“The increase in kerosene oil price, the fuel of the poor, by 14.70 per cent is condemnable as it would severely effect the poor and marginalized consumers who depend on kerosene oil as a sole source of fuel,” Mr Hafeez said.