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?
We all knew that something like this was gonna happen, because the government will not get the next installment of loan from IMF.
I earn 13,000 per month …….do our leaders know how difficult it is to make the ends meet?
do they know the cost of electricity? do they know the cost of food items? do they know how much a bag of atta costs?
with the petrol prices hiked again we are set to face yet a new round of inflation!
I manage to work it out, spending all and saving nothing, it will affect me in the long run as I will have no savings for my children or anything
But what about the lower class? who earn 5000-6000 per month? what about the daily wagers? recently i heard that a man earning 5000 in faisalabad tried suicide when he had a power bill of 1600 !
what about the IDPs? they are already reports that they buy essentials at a double prices, with direct increase in petrol prices they are sure to see the prices go up, as the transportation cost will increase and the profits of the middlemen involved
in my opinion the use of the government vehicles by the officers should be abolished because in this way government will save alot of revenue while this petroleum levy ordinance should be taken back by the president.
i think this is the latest incarnation of the ongoing obsession of our ruling elites with indirect taxes. These end up hurting the poor rather than the rich and hence is regressive.
My suggestion is a direct tax on agriculture and capital gains at the stock exchanges would do less damage and more good, but the question is to whome? Answer being the poor.
I would point out that this is exactly the problem that has blighted Pakistan historically – every insitution interferring with other state institutions be it the military v civil, the civil v military and in this case the judiciary v executive. Instead of interferring with other institutions, if each institution would focus on its own operations and development then one may see the development of strong and capable institutions which in turn will strengthen the state.
I dont wana go through in detail, but want to share that from what i hear, we bought petrol from international market for Rs.27 per litre. I really pray to Allah make our leaders sincere with Pakistan and people.
I think perhaps the Government of Pakistan can get money by reducing only perks of officers of BPS-19 & above. If only one entertainment allowance of the officers remove at the crucial time of Pakistan overcome its problems.
I pray to Allah give sense to our rulers to overcome problems of People of Pakistan.
Unfortunately, nowadays the executive of the country are representative of people. They should facilitate their people by reducing oil prices and other uses of daily commodities. Now people of Pakistan are truly seeing justice and relief from Honorable Supreme Court of Pakistan God bless Pakistan, People of Pakistan and People Party of Pakistan.
I have a possible solution – tax agriculture! Carbon tax is a heavy uniform tax on all Pakistanis. Rich or poor. It is the easy way out to generate revenue. Tax the rich more, tax agricuture in real terms…not as an eyewash. Oil taxation hurts the poor much more than the rich!
It seems that we have yet again ventured into Nottingham where the Sherrif (Zardari)is bent on taxing people and the Merry Men (SC Judges) wish to help the poor.
Are we as a people being hearded collectively to accept another institution in our country as its leader as our Men in Tights?
It’s a pure seperation of powers issue. It looks to me as though the sup. court has no authority to circumvent the legislature unless it acts outside the boundaries of the constitution and is challenged as such by someone with standing via the supreme court. its an interesting turf battle that is being fought over appropriately. This is how it should be in democratic cultures.
In my opinion, the Chief Justice was released by street power and PPP govt avoided bloodshed and allowed it in the larger interest of peace in the country. Now, it appears as though ch Iftikhar has started showing his habitual jucicial activism for which he remained under punishment in Musharraf Govt .
If I may, there are two reason, I think, because of which government is so desperate to keep the prices at an unusually high level – first, it’s the IMF requirements which, in my opinion, won’t let the masses have tiniest relief in anything and we see the phenomenon well-manifested in the case of petroleum products. Secondly, the share of the oil marketing companies, something no serious consideration has been given to, has been said by certain resources to be abnormally high and it’s their high profit-grossing that translates the otherwise conveniently affordable international prices of petroluem products to unusually high local ones after being marketed through the local outlets.
i think this govt is doing little about the fact that people of Pakistan already suffering from load shedding, unemployment and terrorism and these steps worsens the life of people.
please be sincere with this country
Instead of increaseing the tax on poor people, why cant the Govt. reduce the limit of Fuel perk to the people working for the Govt? The govt. is spending no wasting large amounts every year on these perks and by reducing these by just 30% the govt can save a lot of money and help the poor people of Pakistan.
There is only one reason! In my opinion our government has developed a habit of taking money from the poor through taxation.
Strangely enough. The supreme court as an unelected institution not directly responsible to the people is trying to make life easier for the predominantly poor people of Pakistan, while the elected govt of the people should be there to make life easier for the common man! I think the opposite is being done.
OOhhhhhhhhhhh My God,,, what is going on???. In the early morning i heard this news(petrol prices increses).there is no efffect on affluent people,but a great effect on poor people.The leadership should consider the life of poor man who always slept with out light.May GOd bless our contry.
I dont see it perception of clash it is the open clash. It was the executives duty to give relief to people. Judiciary, decided on herself to remove what many see as an unjust taxe. And after applying un necessary taxes Current government has shown it real face.
In the civilized world, i don’t think governments increase prices to cover mismanagement of the economy and their perks when the economy is in the pit. In Pakistan, someone has to stand for the rights of the PEOPLE.
Next I think the CJ should take notice of the ever increasing taxation on SALARIED employees who facing increased taxation every year. Perhaps taxes on landlords should also be increased.
If oil prices are lowered, more oil will be consumed and government will get more revenue and good repute will be an extra advantage. As a nation, Pakistanis are facing energy crisis.
As long as both the executive and the judiciary exercise their powers in accordance with the law and the constitution then I do not see any problems with it. What will happen after 120 days – the time period for which the current executive orders remains effective – is a question to ask!
The present judiciary was supported so much by the people in their struggle for independence that it (the judiciary) now feels obliged to give something back to the general public, I feel. Unfortunately this expedience of the judges is not so far-fetched. Tax imposition is the right of the representatives of the people and therefore I believe that the parliament’s Finance Act, 2009 rightly represents the will of the pakistani population. The order of the Supreme Court to halt the carbon surcharge on petroleum products, I feel is definitely a relieve for the public in general, however, it is harmful in the ling run. This is because I think governments always make long term planning whereas the judges might just look forward to the short term benefit.
Therefore the parliamentarians should be set free to decide such matters not the judges.
In my opinion, I hope we aren’t heading for another judicial uprising
there is no clash its just all too clear the goverment want funds for there non development budget and they want to have it with every hook and crook possible.