ISLAMABAD: The federal government’s decision to keep petroleum product prices unchanged has sparked widespread debate on social media, with many users questioning why consumers were not given the expected relief despite a decline in global oil prices.
In this regard, the social media platforms witnessed a surge in public reactions. The several users argued that the government should have passed on the benefit of lower international crude oil prices to consumers by reducing petrol prices.
Some questioned whether the government had come under pressure from oil marketing companies, while others described the decision as being against public interest.
In such a way, there are number of social media users maintained that international oil prices have fallen to their lowest level since February and urged the government to revise fuel prices accordingly.
They called for immediate relief for the public, arguing that lower global prices should be reflected in domestic fuel rates.
However, others defended the government’s decision, stating that petroleum prices are not determined solely by international crude oil prices. According to these users, taxes, petroleum levy, exchange rate fluctuations, import costs, freight charges and other financial factors also play a significant role in determining domestic fuel prices.
They focused on that these elements should be considered before drawing conclusions about the government’s decision.
The debate gained further attention after oil marketing companies expressed concerns over the government’s pricing policy.
The current pricing mechanism has resulted in an estimated collective loss of Rs104 billion for oil marketing companies and refineries. It cautioned that financially weaker companies could face the risk of insolvency if the existing policy continues.
The OCAC also stated that shifting the financial burden of consumer relief entirely onto oil companies is neither fair nor sustainable. Despite increasing operational costs, the council said the industry has continued to ensure uninterrupted fuel supplies across the country.
It further noted that refineries had supplied fuel to the Pakistan Armed Forces and Hajj flights at previous prices in the national interest.
In addition, the council mentioned that oil marketing companies’ profit margins have remained pending for revision for nearly two and a half years, while outstanding dues amounting to Rs66.7 billion have further intensified financial pressures on the industry.
The government’s decision has therefore generated mixed reactions, with public debate continuing over the balance between consumer relief and the financial sustainability of the country’s petroleum sector.
