Petroleum push and pull

Petroleum push and pull

The Oil and Gas Regulatory Authority raised the prices of petroleum products on Thursday following a presidential ordinance. The hike came a day after the Supreme Court suspended a government-imposed carbon surcharge in an effort to keep the price of petroleum products low. 

The price hike means that petrol will now be available at Rs 62.13 per litre while kerosene is now priced at Rs 59.35 per litre.

Is the ongoing petroleum price see-saw a clash of perceptions between the executive and the judiciary? What does the price hike indicate about government priorities? Are local petroleum prices tied to the international market, or is this price hike a result of IMF requirements for Pakistan?

 

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76 Responses to “Petroleum push and pull”

  1. Alex says:

    People can quit petrol bikes and cars and can follow the path led by India using electrically charges automobile for private transportation and CNG (Compressed Natural Gas) for public transports and this action will surely going to give relief to crunching economic crises and gas scarcity.

  2. Ajaz says:

    We must realize our political and government system is far from perfection like most of the the countries in the world. We must learn to give time to the ruling parties to finish their mandate.

    Our politicians and public have always been very impatient to allow any government democratic or dictators to finish their tenure, plans and national projects.

    We removed Ayub Khan’s reign because of insignificant issue such as raising few paisas on suger. Nation started riots and toppled his government along with the peace, security and progress that was taking place at that time in the country.

    We repeated same routine with Zulifqar Ali Bhutto and Pervaiz Musharaf, every time we ousted a government the nation went through turmoil as a result we went few steps backward.

    Question is; when we as a nation will learn from our past mistakes and stop repeating them. We must stop the process of self destruction lead by few ambitious, self serving politicians. In this case a SC Judge.

    He has not done one single thing to fix his house, instead he has been meddling in the affairs of other branches of the government. The functions and the duties of his position is to enforce laws to keep peace and order in the country not the contrary. He has been undoing every thing law enforcement and executives branch has been doing to maintain law and order in the country.

    Government and security forces are catching terrorist and he has been releasing them through the revolving doors. Thus causing embarrassment for the nation at the international levels.

    Now he owes favors to PML ‘N’, for getting his job back, therefore, he is trying again to destabilize the current democratically elected government, in order to create disorder in the country to overthrow this government in hope to bring his buddy back in the power. All these efforts are to create opportunities for few people on the top, unfortunately, the people suffer, country suffers and we keep stepping backward.

    I urge to the nation to wake up use your brain instead of following like cows and cattle.

    May Allah help us all to see the light.

  3. Imran says:

    Who is running the country the SC or the peoples elected goverment?

    If the goverment make the wrong decisions they will get voted out…simple. The SC should get its own house in order they are far from perfect.

  4. This shows that the commoners have no right to live in our society. The income is very low and the taxes and prices are high.

  5. Tariq Mian, Canada says:

    The Government must be able to deliver good governance in all circumstances reserving its rights to a well-maintained writ, of course.
    Yet, there are always certain limits to be followed, and with regard to the artificially inflated prices, the state must make sure that the consumer public would not suffer any hardship.
    With regard to the disputed carbon tax levy, the regulatory authority went too far, but a timely reaction coming from the justice system suspended the said levy.
    ‘What a sigh of relief for the poor public!’ but a Presidential ordinance screws up and nails down the said relief in no time.
    Here comes, not a sou-moto action, but a regular interim order to stay the price-hike during the pendency of the main petition in the apex court.
    The faided relief to the worried consumers does come back and the public is slightly smiling again. Thanks to the successful justice system.
    The executive should be extremely careful, as this alone would be in the best interest of the country.

  6. Zahid Ilyas says:

    I am not supporting PPP gov but i must say that policy making and legislation come under framework of parliament and not judiciary. Purpose of judiciary is to check the legal aspect of matter. Parliament is the one who got votes from poor to solve their problem..Thats the proper forum to debate such issues..secondly i wonder why PMLN voted for budget and why they didnt debate it if they were so concerned. I believe every pillar of state must work in its own domain if pakistan has to progress..This is tantamount to if civilian gov is not performing well and a dictator grabs power using slogan of saving nation….

  7. Tarek says:

    This government needs to go away…period.

  8. Asmat Jamal says:

    Government should tax SMSs as was originally planned. Taxing petroleum will result in high prices.

  9. Ajaz says:

    This Judge has started round two. SC should mind its business and stop meddling in the affairs of executive and law making bodies of the government.

    If Opposition has problem with any issues they should discuss in the parliament not in High Court or streets. They should wait for their turn to win the election and let this government finish its term.

    I am not very keen of the ruling party, but to keep the democracy system alive in the country we must restrain our selves from toppling the government every year.
    Our politicians have been playing this game since the inception of our country and look what it has done to our country.

    They will force another martial law by creating political instability, just because they do not have the patience.
    They just don’t like to be in the opposition, every one of them just like to rule the country not for country sake but to satisfy their personal goals.

    This Judge is a bad news for Pakistan’s stability, he is creating one more time a situation to derail the country from achieving its main objectives; such as; TO get ride of Talibans and other extremists and put country back on track for economic recovery.

    He is too antagonistic and interferes in the functions of other branches of government. He is again stepping into the territory beyond his legal jurisdiction.

  10. Nadeem Ahmed says:

    I am not supporter of PPP and staunch supporter of lawyers movement and many criticism on govt performance are valid but what type of country is our, where elected people always have least authority.After military now judiciary. Remember judiciary is another from of bureaucracy. Ch Iftikhar is my hero but not all judges so if we create this precedent , That supremacy of unelected judiciary on elected Parliament then any thing can happen in future.
    why start with petroleum not with military or bureaucracy expenses.In future possible scenario is after passing budget through Parliament it will go to supreme court for approval.Same logic can also apply on all custom imported duties, Why govt making profit with these duties. Next day S court can drop these duties. In last three decades we learn that if you want to govern this country join army to be a general but now it looks there is another avenue try to be a judge.

  11. Tariq Mian, Canada says:

    Justice system seems healthier than before, therefore, the disputed situations would be taken care of in the light of the prevailing law.

  12. Ch Allah Daad says:

    This is not the first time that prices of petrolium products have been enhanced, nor this is the last time. The majority of Pakistanis are poor and most of those poor are living below povety line, earning few rupees per day. They are not driving cars or motor bikes. This price increase will make no change in their lives, because they have no money to spend. Only lazy middle class of cities is making loud noise, and their undesired noise is not because of price increase, as such step has been taken hundreds of time in the past, actually they dislike this democratic government. They want this government to fail. They know, Government has no other option, except to bridge the ever widening gap between income resources and expenses.
    Their unwise proposal is to impose agriculture tax. This way they want to destroy agriculture in this country. They have no clue about agriculture, and how its done. The precious land around cities, where vegetables were grown and dairy industries were estalished, they have built palaces, and in the process have destroyed a very fragile balance of demand and supply, also awareness about farmer’s life
    They don’t know farmers are already paying dozens of hidden taxes, levies, import duties and toll chargers on machinery, fertilizers, seeds, pesticides, diesel, electricity and many other inputs. Every input is as par with international price, yet their products are sold in cities at cheaper rates, because residents of cities have political and media power. There is net loss in agriculture buiness for majority of farmers, that’s why farmers are selling their lands and moving to cities, as those are the places where you need not to wake up early in the morning, live with animals and work hard, instead buy a shop or business in a city, wake up late in the morning, read newspapers and watch abusive media, curse government, rob customers, steal taxes and suggest agriculture tax as a cure to all our problems.

  13. Syed hassan says:

    I wonder, where the Rs 27 liter oil prices came from? is it the crude oil. In US we are paying almost $3 a gallon at pump which is a market price with no taxes, it converts into about Rs 55 a liter at 80 Rs to a dollar. In Canada fuel prices are almost $1.20 a liter, in Europe it is more than two dollars a liter. Then we want subsidy on electricity, food, exports etc. We want to build Dams for electricity, build roads and have impeccable defence. We dont want IMF money, we dont want aid money from US. We want to provide rule of law without spending a penny. We want to settle IDPs also. So what else can government do if they dont collect taxes, print money?

    Talking of 6 dozen minister is in fashion, in US Obama had made five thousand political appointments. It is important that elected representatives run the government and not leave it to run by beurocrats. This is why we had elections so that elected leadership runs the executive and legislature and not the bureaucrats.

  14. Tariq Mian, Canada says:

    The ordinance, issued by Mr. President with regard to a price hike of petroleum products, has been challenged in the apex court and the CJ has indicated to review the same.
    In my earlier comment, I hinted that a rift between the executive and judiciary would remain a mystery in the presence of the notorious 17th amendment in the constitution of Pakistan 1973.

    As the CJP is entitled to take a ‘sou moto’ notice of any wrongdoing, where the executive is not considering any action to fix the same. And, a ‘dictatorial Head’ is too busy enjoying a never-ending honeymoon.

    When a ruler has no boundary to follow, there comes a bad news for the nation, so a judicial activism takes place resulting in a tug-o-war.

    The matter has been brought before the SC Pakistan, and a ‘stay order’ to stop the implementation of the ordinance has been prayed in the petition.

    Since the matter is now sub-judice, further discussion on the topic has to be limited, otherwise contempt of court becomes enforceable.

    “The law of the land deserves to be respected and followed.”

  15. Ammad says:

    I think the whole nation is curropt and we all have to change our mind sets rather then blaming the government etc.
    Like china did… Stop slacking every body

  16. Ahmed bin Babar says:

    Carbon tax: the most desirable modern tax

    “The Supreme Court has temporarily suspended the recently imposed carbon tax on petroleum products. The suspension remains in effect until a final decision is reached on the petitions filed against it…”

    I am not surprised over this interim decision, by the honorable court, and consider it only a short term reminder (rather reprimand) for the government in Islamabad to make it realize the purpose of each tax, levied on the public, and to ensure that this tax money is fully utilized to achieve the goals of healthy environments.

    So now it is essential for the government to prove its credibility to win over the case. As according to a recent report prepared by the commission headed by justice ® Bhagwan Das the chain of incumbent federal executives, since 1999, has earned almost 10000 billion rupees in taxes and royalties from the oil sector but little has been done for the environments. While the environments, wherein we breathe, live and work should undoubtedly be clean, healthy and harmless.

    However, I am surprised over the continued reaction of certain public and political circles which are celebrating over the recent interim verdict of the Supreme Court without realizing that this tax (today or tomorrow) is a must to contain the carbon killing agents for the sake of public health, quality of life and living environments.

    The whole world is worried about the environmental changes; they are imposing such kind of taxes and the recent G8 summit of the industrialized nations in the Italian city of L’Aquila agreed over the carbon cuts by 50-80% to bring down the world temperature by 2% until year 2050. This is all about our survival and the survival of our only planet which has to be kept clean & green through our honest and sincere efforts to enhance and ensure the collective good (relief) of us all and our coming generations.

    So before I conclude I would like to recommend the media, public, politicians and the honorable panel of judges (concerned) to view & review the websites like pointcarbon.com and Wikipedia.org/wiki/carbon tax to have a better and broader perspective of the climate concerns.

    Ahmed bin Babar
    multiways@hotmail.com

  17. Christopher says:

    Why isnt the agriculture sector being taxed?? Since 1947!
    Why isnt the ostentatious displays of the
    elites’ priviliges (elected & defence) being stopped??
    The elected govt who i hope represents us, should answer these two questions first.

  18. Usman says:

    Sir I am in favour of your words. Our Government thinks that we are not to answer any one. On the same day of Imposition of Carbon Surchargw our respected Prime Minister says that the Facilities to the members of Parliment have been doubled.
    So what can we INFER from this?

  19. muhammad umar farooq says:

    I stand with the chief justice of pakistan and he must suspend the ordinanca as well.

  20. Reasoner says:

    @All

    Can anyone give reference or explain what actually is ‘theory of seperation of power’ under constitution of 1973 ?

  21. saify chinoy says:

    I agree with Akber. this ‘people’s’ government is in need to finance thier luxzurious way of living. can one imagine a country like ours having 80 to 90 ministers/advisors of federal level?
    We need a few long marches to drive some common sence into the heads of what goes for the governing class.
    The imposition of such taxes are just a begining. we should be ready for more suprises.

  22. S M Buriro says:

    I think, the main reason for this hike in petrolume prices is just to cover up the budget deficit.

  23. manmade says:

    This problem could be solved, by:
    1-taxing all cars
    2-taxing all agri land over 2 muraba (50 acrs)
    3-direct tax on hotels
    4-Taxing all real estate transactions
    5-taxing all cell phones,
    6-making price of ciggaretts 100 times more expensive

  24. Jamal says:

    Its time to take our bicycles out! Might as well shed some fat

  25. Umer says:

    According to my point of view, these are games being played with the people of Pakistan by decreasing the petroleum prices to show mercy on them and then increasing again which will result hatred in the hearts of the people for the government.

    If supreme court has an authority to change in the prices of petroleum products for the benefit of the people of pakistan, then the government should have to abide by the orders of the supreme court rather than fighting back to revive the carbon tax for the poor economy of pakistan which was exempted by the judiciary.

    Our Government and judiciary must take decision with mutual consent so that the stability of the economy of Pakistan would not be hit as the entire world economies has seen Global financial crisis and we should firm in our decisions, commitments and integrity.

    The taxation system in our country is so bad that it discriminates the classes of rich and poor itself, while in developed countries all the people have an equal status whether they are poor or rich and our economy should be like them.

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