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Shift in petrol pump dealers’ logic

June 28, 2012

THIS is regarding the recent shortage of gasoline at petrol pumps immediately after the reduction in prices. I just want to raise a point that whenever there is price rise announced by the authorities concerned, the dealers happily increase all prices without even thinking for a moment that they had bought all earlier stocks at the lower prices.

However, whenever (which is rare indeed) there is reduction in prices, the dealers block selling of petrol immediately, giving the excuse that they had bought the inventory at higher prices, so why should they sell it at lower prices. They say they will sell only when cheaper supplies come in.

Apparently, it is a logical principle but it should also be applied when there is price hike. Then they should sell all previous stocks at lower prices and increase prices only when the next or rather expensive supplies come in.

Secondly, I also want to draw the attention of the authorities concerned towards the sudden enhancement of transport fares that are not increased in proportion to the gasoline price rise but many times over which is most unfair and unacceptable. In contrast, transporters never bother reduction in fares even in line with the fall in prices.

MUHAMMAD NAEEM Karachi