Masses not benefiting from reduced oil prices in int'l market: PBIF

KARACHI: Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has expressed concern that masses are not getting the benefit of reduced oil prices in the international market.

He said that there should be a mechanism to transfer the benefit of receded prices to the consumers and industrial sector without delay.

Mian Zahid Hussain said that oil prices are at the lowest in the last three months due to a strong dollar and resurgence of coronavirus.

He said that China, which is the largest crude importer has introduced a zero-tolerance policy for Covid-19 while many countries have reintroduced travel restrictions which has reduced the demand for oil.

The dollar is at its highest during the last nine months reducing oil price by five dollars in seven days but masses here are yet to get any benefit, he said.

The business leader said that the shale oil production in the US has increased to fifteen months high while OPEC has also decided to boost production by every month which will also hit the oil prices.

The increased popularity of electric vehicles have also dented oil sales therefore there is no chance of substantial hike in oil prices but the chances of reduction is bright, he observed.

He noted that government reviews oil prices fortnightly but some other countries are reviewing it on daily, after three days or weekly basis and prices are announced after considering the exchange rate and other expenses. The government should consider streamlining oil prices mechanism, he demanded.

Copyright Business Recorder, 2021