The government has imposed a massive hike in petroleum prices with immediate effect. The historic increase of 33 percent is unprecedented and shows the government’s incompetence and surrender in front of the mafias and cartels that rule the country.
The bombshell development came and went into effect overnight sending shockwaves among the masses. The government did even follow the requisite procedure. OGRA had not recommended the hike, yet the Petroleum Division got the summary approved from the prime minister.
The blame lies with the special assistant on petroleum affairs, Nadeem Babar, who has created a new scandal without following the procedure. The advisor owns shares in two Independent Power Plants (IPPs) and has created a conflict of interest in the position. The ministry also failed to shore up oil stocks, imposed a ban on oil imports and instead gave a leeway to local refineries.
While the rest of the world saw a decline in oil prices and ample stocks, Pakistan witnessed an artificial shortage leading to queues outside fuel stations. The all-powerful oil companies refused to sell at lower prices, hoarding stocks and claimed there were no reserves as imports were banned. The government made lofty claims that it will take action against the oil cartel but made no progress.
The government initiated an inquiry, raided oil depots and concluded that eight companies were responsible for the crisis. No significant action was taken and a symbolic fine of Rs4 million was imposed. Oil cartels are immensely powerful and can even bring down governments and similarly, we saw the incumbent government roll back its plans to take action.
Prime Minister Imran Khan has created a scandal which may lead to his undoing. The prime minister promised change but was faced with an economic crisis and crushing pandemic, yet it is his inability to take action against these mafias which has great the biggest disappointment. We saw the inaction against the flour and sugar crisis and now the petroleum crisis has created a new firestorm.
The worst affected will be the common man is brace for a new wave of inflation. It has been 26 days since the last decline in oil prices on June 1 but there were shortages for over two weeks. This implies the relief the government intended to provide lasted a mere 13 days which will have no real impact on the lives of the people.
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