Former Finance Minister Miftah Ismail has voiced serious concerns regarding the recent sharp increase in petrol prices, suggesting that the move may be driven by corrupt practices rather than sound economic policy. Speaking on the talk show Aitraaz Hai, he expressed skepticism about the rationale behind the government’s decision, emphasizing that the sudden hike has raised troubling questions about transparency and fairness in the fuel sector.
Ismail highlighted that the government could have taken a more effective approach by enhancing market oversight to prevent artificial shortages and price manipulation, which are common tactics that distort fuel prices. He argued that stronger regulatory measures and vigilant monitoring of the petroleum market would have curbed hoarding and speculative behavior, thereby stabilizing prices without burdening consumers.
Instead of allowing prices to soar, the former minister proposed that increasing taxes on petroleum products would have been a more prudent and equitable solution. He pointed out that a gradual tax adjustment could have generated additional revenue for the government while avoiding the shock effect of a sudden price jump. him, the decision to raise petrol and diesel prices by Rs55 per litre is likely to unleash a wave of inflation, impacting the entire economy and particularly hurting low- and middle-income households.
During the discussion, Ismail warned that the inflationary ripple effect triggered by the fuel price hike would exacerbate the financial strain on ordinary Pakistanis, who are already grappling with rising costs of living. He criticized the government for shifting the entire financial burden onto consumers instead of absorbing part of the cost, which would have demonstrated a more responsible and compassionate economic policy. This approach, he suggested, reflects a lack of consideration for the socio-economic realities faced by the public.
Delving deeper into the issue, Ismail expressed his inability to comprehend the justification for such a steep increase in fuel prices, stating that the move smelled strongly of corruption. He alleged that the government’s decision effectively handed a lucrative windfall to Pakistan State Oil and other petroleum companies, implying that these entities stand to benefit disproportionately from the price hike. This, he argued, undermines public trust and raises questions about the integrity of the decision-making process.
Furthermore, Ismail insisted that fuel procured at lower international rates should have been sold domestically at stable prices. Only when the government imports fuel at higher costs should the retail prices be adjusted accordingly. This principle, he maintained, would have protected consumers from sudden price shocks and ensured a fairer distribution of costs. His comments underscore the need for transparent pricing mechanisms and accountability in the management of Pakistan’s vital energy resources.
