It seems that the trend of declining fuel prices has bottomed out and the situation is going to reverse now. Reportedly, the government is all set to jack up the prices of petrol, oil and lubricants (POL) from March 1in the wake of recommendations forwarded by the Oil and Gas Regulatory Authority (OGRA). OGRA through its summary has requested the Finance Ministry to increase the price of petrol by Rs 1 per liter, diesel Rs one and a half per liter and price of kerosene oil by Rs three per liter. Last month, the government had revised the prices of petroleum products for the next fortnight. Already the government has imposed an unprecedented general sales tax (GST) of 27 percent on POL products. Presently, the rate of GST and excise duty in Pakistan is the highest in the region. There is no logical justification for such an increase. Possibly, the government is perturbed to meet the ambitious revenue targets. Amid declining foreign exchange reserves, the sale of POL is a cash cow for the Ministry of Finance as 25 percent revenue comes from the oil and gas sector. The government supports an exorbitant increase in GST in order to keep the budget on track. This is not a strong argument because an increase in demand has already offset this shortfall and there is no reason to withhold the complete benefit of a fall in oil prices. During the last three months, fuel prices have been increased on regular intervals. This increase in POL products’ prices affects the prices of daily use commodities and transportation fares. The expected increase in POL prices might trigger a new wave of inflation. Moreover, the government is still unclear under what circumstances and conditions it will take back the unjustified high rate of GST. The government must be aware that the masses have become more conscious of their problems due to the active role of mass media and they can stand up against this injustice. The rulers must look for other means for raising cash and meeting revenue targets instead of burdening the masses with more taxes. The government needs to reduce its unnecessary expenditures and take austerity measures. Despite the fact that shortfall of revenue has been offset due to surge in demand, the Finance Ministry is reluctant to pass on the full relief to the masses, which might prove detrimental to the government’s efforts to win the people’s trust. *