Pakistan government to withdraw subsidy on oil products
In one of my earlier posts I had written that government of Pakistan has refused to pass the benefit of decreasing oil prices to consumers. Now I have read that the government has decided to do away with all subsidies which it says it is giving on petrol and diesel due to which it was incurring heavy losses. It is said that under an IMF plan to support the economy of the country, all subsidies currently being given will be withdrawn by the end of April next year.
The other day Jang, a widely circulated Urdu daily from Pakistan, did an anaylysis on the prices of petroleum product and said that it was incorrect to say that government was giving any subsidy on petrol and diesel. The analysis showed that the government was buying oil at reduced prices from international market and selling it at increased rate. It also said that government was charging high surchage in the name of petroleum development levy and it was also charging sales tax which was unfare.
I think that keeping in view international rates, the prices of POL products in Pakistan must be reduced by at least 25 per cent. It is a tyranny to force people to pay extra amount of money.
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