Petrol pumps held off selling fuel until prices were announced; rates raised again
People wait their turn to get fuel at a gas station in Peshawar January 30, 2023. PHOTO: REUTERS
RAWALPINDI:
The Federal Government’s recently introduced policy of frequent oil price revisions has sparked widespread concern across the transport and business sectors, leading to immediate increases in public transport fares, higher freight rates and a nationwide strike threat by petrol pump operators.
Following the latest hike in petrol and diesel prices announced on Friday evening, transport operators in Rawalpindi and Islamabad revised prices with immediate effect. Public transport prices have increased by 15 to 17%, while freight operators have increased freight rates by 20%. Transport unions have also warned that fares will now be adjusted each time fuel prices are revised.
Pick-and-drop services for office workers and students have also announced that their rates will fluctuate in line with changes in petrol and diesel prices. The minimum stop-to-stop fare on public transport in the twin cities has been increased to Rs 60.
Long-distance transporters have also revised their tariffs, with the freight rate for container, trailer and wheeled transport between Karachi and Peshawar reportedly increasing to Rs 800,000.
The latest hike in fuel price triggered panic buying across Rawalpindi and Islamabad on Friday evening. Following reports of the impending hike, petrol stations in the twin cities have temporarily suspended fuel sales, resulting in long queues of motorists from around 9pm to midnight. Fuel sales resumed after the revised prices came into force.
According to transport operators, fares between cities in Rawalpindi district have increased by 15%, prices on intra-district routes by 17%, while services between Rawalpindi and Islamabad have increased prices by 20%. Long haul operators have also increased fares by 17%.
The Inter-City Transport Association and Transport Federation rejected the government’s policy of frequent fuel price revisions, describing it as tantamount to introducing a “mini-budget” on an almost daily basis. They warned that if fuel prices continue to be revised frequently, transport prices would inevitably rise just as often.
Pakistan Petrol Pumps Owners Association also criticized the policy and demanded its withdrawal. The association warned that if the government failed to abandon the system of revising petrol and diesel prices daily or every few days, petrol pumps across the country would observe a nationwide strike and stop operations.
The Rawalpindi District Bar Association announced that it would challenge the government’s fuel pricing mechanism before the Rawalpindi Bench of the Lahore High Court, terming it unconstitutional and illegal.
District Bar President Tariq Mahmood Sajid Awan said frequent hikes in oil prices amounted to imposing repeated mini-budgets without due process of law.
Meanwhile, the Transport Confederation reiterated that continued increases in fuel prices would inevitably result in corresponding increases in passenger fares.
Political parties, including Markazi Muslim League and Pakistan Tehreek-e-Insaf (PTI) Rawalpindi, staged demonstrations in Faizabad and Chandni Chowk on Friday evening, demanding that the government withdraw the new price policy.
Petrol pump owners Niaz Ali and Sheikh Waheed warned that the policy would destabilize the country’s petroleum supply system and urged the government to reconsider its decision.
The price hikes led to disagreements between passengers and transport operators during Saturday, while officials from the district administration and regional transport authority also reportedly faced uncertainty over the implementation of the frequently changing fuel pricing mechanism.
