The government has raised prices of petrol and diesel by Rs20 to Rs 272.95 and Rs 273.40 per litre, respectively. According to finance minister Ishaq Dar, the prices of both petrol and diesel in the international market have increased over the last 15 days, necessitating an increase in domestic prices.

Fair enough. What is, however, worrisome is the closure of almost all filling stations in Karachi in anticipation of a significant rise in the prices of fuel yesterday morning.

All of them were protecting their inventories with a view to earning windfall profits on account of likely increase in prices of both petrol and HSD. Motorists at various filling stations were seen even offering higher prices to get fuel but without any success.

It appeared as if the owners of petrol stations were quite confident about a big rise in the prices of these items. In his televised address yesterday, the finance minister said, among other things, that “the delay in the announcement, the basic reason was that we were looking at if there were ways to reduce it, if there was some leeway.” What leeway? Apparently, the owners of petrol stations were tipped off by some insiders that the government was increasing the rates of petrol and HSD.

Hence the need for holding onto stocks or inventories. In other words, general public was made to suffer for several hours much before the formal announcement of increase in fuel prices by the government.

How ironic it is that the government always succumbs to the pressure of oil marketing companies or owners of petrol stations after they raise a hue and cry over the purported devalue of their stocks every time the government decides to decrease the prices of fuel.

It has often been seen that the government quickly retreats ignominiously in order to ensure that the owners of petrol stations stay in good humour.

Karim Bux Rathore (Karachi)

Copyright Business Recorder, 2023