Daily Times

The government has announced yet another reduction in the prices of petroleum products, marking the fifth cut in two and a half months. Petrol has become cheaper by Rs 28.57 and diesel by Rs. 37.35. While this should bring significant relief to the public, many are questioning whether the trickle-down effect of these price cuts will truly benefit the common people.

The latest price changes set for the first fortnight of October are as follows: petrol has been reduced from Rs. 249.10 to Rs. 247.03 per litre, diesel from Rs. 249.69 to Rs. 246.29, kerosene from Rs. 158.47 to Rs. 154.90, and light diesel oil from Rs. 141.93 to Rs. 140.90 per litre. These reductions follow several similar announcements in recent months, including a Rs. 10 drop in petrol and Rs. 13.06 reduction in diesel prices on September 15, and smaller cuts in August.

While the global decrease in oil prices is partly responsible for these reductions, the government’s strategy to pass on these savings is commendable. However, despite these efforts, many ordinary citizens are not feeling the full effects of the price cuts. The rising cost of other essential goods and services continues to overshadow the drop in fuel prices, making it difficult for the public to experience meaningful relief. This raises concerns about the effectiveness of the administrative machinery responsible for monitoring market prices and ensuring that reductions in fuel costs lead to lower prices for everyday goods and services.

There is growing concern about the possibility of a new mini-budget being introduced. Rumours suggest that the government may impose additional taxes shortly to meet revenue targets, particularly as it seeks to fulfil commitments under the new IMF loan package of seven billion dollars. If true, this could bring a fresh wave of taxes that may cancel out the benefits of the current fuel price reductions.

In this scenario, the public may see little to no improvement in their financial situation, as the burden of new taxes would likely increase the cost of living once again.

While the recent fuel price cuts and the IMF’s acknowledgement of Pakistan’s improving economy are positive signs, the government must take further steps to ensure that the public truly benefits. This requires a more effective approach to managing inflation and ensuring that the reductions in fuel costs are reflected in the prices of other goods and services. *