Slump in international market: PITAF urges government to reduce oil prices

With the price of oil falling to its lowest level since 2009 as global production continues to remain high, here traders and industrialists blame the government for failing to reap the benefits of the prices slump by at least cutting down those of the local petroleum oil and lubricants.
The global slumping price comes as the Organisation of the Petroleum Exporting Countries (Opec) refused to cut oil production. The organisation whose production covers about 30 percent of the world's oil demand has faced a growing competition from new supplies.
The maiden criticism was aired on Friday by the Pakistan Industrial and Traders Association Front, whose Chairman, Irfan Iqbal Sheikh, said in a statement, "In Pakistan, it has been the practice that the government too often focuses on increasing the general sales tax on the petroleum oil and lubricants products to maintain its revenue collection while the public and the consumer are deprived of this benefit."
He claimed his association had continuously urged the government for giving a level-playing field for traders and industry to compete and play their role in the economy and in the international market the prices of petroleum products have dropped and the government should have reduced the price of petroleum oil and lubricants products.
"The United States and European countries give full relief to their consumers by minimising the prices of petroleum products. The same practice then should be adopted here so that the level-playing field will be provided to the public, including to those of trade and industry," he added.
He went on to argue that lowering the oil prices would also reduce those of energy which in turn would help the government to control over the energy crisis. He went on, "The declining trend of the oil prices will not only cover petroleum oil and lubricants products but also that of more than 100 by-products which are being used by the public. Plastic goods, rayon, synthetics, fiber, nylon, Vaseline, glycerine, and many pharmaceutical products are included in oil by-products.
"It has been rather unfortunate that despite a cut in the petroleum products in international market, which is now $35.46 per barrel in Asian markets, and which is also a 10-year-minimum figure, the government has not yet transferred its relief to its consumers. Add to that, public transport unions too only reduced fares minimally, thus depriving the common man of the benefits, as well."