niaz
PDF THINK TANK: CONSULTANT
- Joined
- Jun 18, 2006
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PTI gov’t is directly responsible for the price increase of sugar, flour, medicines and a lot of other things. But you cannot blame PTI or Imran Khan for the high price of petroleum products.
Brent crude price in April 2020 was $18.4 per bbl primarily due to Coivd-19 depressed consumption worldwide. By July 2020 Brent price had risen to $43. 4 per bbl and now it is selling at around $75 per bbl.
Next door in India, petrol price is also around RS 1.00 per litre which equates to more than 200 Pak Rupees.
Undoubtedly the situation is tough on Pakistan consumer. Since most of the petroleum products are being imported, GOP has no control over petroleum prices. Additionally, additionally Pakistanis don't like paying taxes, GOP has no funds to subsidise the increase in the cost of imports.
Should gov't turn a blind eye over the smuggled Iranian gasoline & diesel; gov't lose some tax revenue but it would be amply compensated by lesser import bill as well as cheaper petrol price in parts of Baluchistan.
Brent crude price in April 2020 was $18.4 per bbl primarily due to Coivd-19 depressed consumption worldwide. By July 2020 Brent price had risen to $43. 4 per bbl and now it is selling at around $75 per bbl.
Next door in India, petrol price is also around RS 1.00 per litre which equates to more than 200 Pak Rupees.
Undoubtedly the situation is tough on Pakistan consumer. Since most of the petroleum products are being imported, GOP has no control over petroleum prices. Additionally, additionally Pakistanis don't like paying taxes, GOP has no funds to subsidise the increase in the cost of imports.
Should gov't turn a blind eye over the smuggled Iranian gasoline & diesel; gov't lose some tax revenue but it would be amply compensated by lesser import bill as well as cheaper petrol price in parts of Baluchistan.
