The benefits of the recent decrease in petroleum product prices have not been passed onto the common man due to lack of co-ordination between the centre and the provinces, Professor Khurshid Ahmed, former Senator, told Business Recorder.
A decline in POL prices should have had an immediate impact on transport costs, both for the general public as well as transport of perishables and other commodities however no downward impact was witnessed on prices in the aftermath of the decline in POL prices. Inexplicably fares increased on the plea that inflation has been high and the transport sector had not raised fares for the past two years.
In June the recent decrease in POL prices was the third reduction as on May 31, petrol was being sold at Rs 103.36 per litre which at present is being sold at Rs 84.49 per litre. Similarly CNG price has also been reduced by over Rs 9 per kg. An official said it was the responsibility and domain of all the provincial government to make an increase or decrease in the transportation charges in light of changes in prices of petroleum products. "Provincial Transport Departments act very swiftly and pass on to the consumers cost of increase in petroleum prices with the complicity of transporters but move very tediously to provide any relief to the people of any decrease in petroleum prices," he added.
The official on condition of anonymity said that transporters were unwilling to provide relief to the common man in terms of transportation charges on account of lower petroleum prices, adding that reduction in transportation charges would have consequently led to a decrease in the prices of essential commodities especially perishable items.
An official of Finance Ministry said the people might have been getting partial benefit at the petrol stations and might get some relief/benefit in coming months in the form of Fuel Price Adjustment (FPA) on electricity.
Professor Khurshid Ahmed laid the blame squarely on a total lack of co-ordination between the centre and the provinces. The provincial governments have been unable to persuade the transporters to reduce transportation charges following reduction in petroleum prices of around Rs 19 per litre in June 2012. "Any reduction in transport charges would have a very positive impact on the inflation on account of lower transportation charges which seems highly unlikely because of total absence of co-ordination between the federal and provincial governments and poor governance across the country," he added.
He urged the federal and provincial governments to make sure that the benefit of reduction in oil prices was passed on to the people. On contacting Finance Secretary Punjab Asif Bajwa advised this correspondent to contact the transportation secretary who could not be contacted despite many attempts.