FIRST, the prime minister stated that the decision to increase POL prices is taken by the Oil and Gas Regulatory Authority, which is autonomous and independent of the government influence. Now he is assuring the MQM that increase in the POL prices will be reviewed.One fails to understand why Ogra was created when the major business of crude oil imports, oil refining, natural gas distribution is owned by majority of the federal government-owned companies. The regulatory authorities are required when a free market mechanism is practised and all business is managed by the private sector.
Moreover, the Ogra staff consists of bureaucrats retired from the government and there is hardly any presentation on its board of members from NGOs working for the rights of the consumers. Most of the decisions taken by the Ogra are for the benefit of the government and oil and gas companies. The Ogra seems to be working just as an information wing of the ministry of mineral and natural resources and finance ministry. Its basic objective is to increase or decrease the prices of POL or to issue licences for CNG stations, LPG and meeting the demand of natural gas distribution companies for increase of gas prices.
If Ogra is not a part of the government, then why is the government spending millions on advertisement in the print and electronic media justifying the increase in the prices of POL products and appealing to consumers to conserve energy?
The reduction in consumption of petroleum products is possible only if the government provides a decent, comfortable public transport system and improves the railway which is the basic mass transport system the world over.
The fact is that the government wants to narrow the budget deficit to sustainable level and to maintain its relationship with the IMF and other financial institutions. It is a fact that the government is collecting huge amount of taxes from petroleum andlubricant business at various stages; from importers of crude oil companies, oil refineries to lubricants manufacturers andPOL products marketing companies.
Owing to the government’s failure to collect direct taxes from its own so-called elite class, it heavily depends on indirect tax system for revenue. Moreover, it finds it convenient to burden the people, a tactic which is an old method of kings and aristocratic rulers to collect taxes from the people to maintain their own luxurious lifestyles.
The people are already crushed under unprecedented inflation, finding it difficult to make both ends meet. I wonder why government is reluctant to collect taxes from agricultural income, landlords, real estate and business tycoons. Why the government is not taking action to recover written-off loans of over Rs280bn.
The privatisation of PIA, Pakistan Steel, Pepco and others should be done at the earliest. It is time that the government subsidised food and POL products by collecting taxes and recovering the written-off loans so that the people can get some relief.
S.T. HUSSAINLahore