Gasoline pumps suspended fuel sales until prices were announced; rates went up again
People wait their turn to fill up with fuel at a gas station in Peshawar on January 30, 2023. PHOTO: REUTERS
RAWALPINDI:
The federal government’s recently introduced policy of frequent oil price reviews has sparked widespread concern in the business and transport sectors, leading to immediate increases in public transport fares, higher freight costs and a threatened nationwide strike by petrol pump operators.
Following the latest hike in petrol and diesel prices announced on Friday night, transport operators in Rawalpindi and Islamabad have revised rates with immediate effect. Public transport fares have increased between 15 and 17%, while freight transport operators have increased freight rates by 20%. Transport associations have also warned that fares will now be adjusted whenever fuel prices are reviewed.
Pickup and delivery services for office workers and students have also announced that their rates will vary depending on changes in gasoline 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 rates and the freight for transporting containers, trailers and trucks between Karachi and Peshawar has reportedly increased to Rs 800,000.
The latest fuel price hike sparked panic buying in Rawalpindi and Islamabad on Friday night. Following reports of the imminent increase, gas stations in the twin cities temporarily suspended fuel sales, resulting in long queues of motorists from 9 p.m. to midnight. Fuel sales resumed after revised prices came into effect.
According to transport operators, intercity fares in Rawalpindi district have increased by 15%, fares on intra-district routes by 17%, while services operating between Rawalpindi and Islamabad have increased their fares by 20%. Long-distance transport operators have also increased rates by 17%.
The Intercity Transport Association and Transport Federation rejected the government’s policy of frequent fuel price reviews, describing it as the equivalent of introducing a “mini-budget” on an almost daily basis. They warned that if fuel prices continue to be revised frequently, transportation rates will inevitably increase with the same frequency.
The Pakistan Petrol Pump Owners Association also criticized the policy and demanded its withdrawal. The association warned that if the government did not abandon the system of daily or every few days review of petrol and diesel prices, petrol pumps across the country would go on a national strike and suspend 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, calling it unconstitutional and illegal.
District Bar Association president Tariq Mahmood Sajid Awan said frequent increases in oil prices amounted to imposing repeated mini-budgets without due process of law.
Meanwhile, the Transport Federation 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 protests in Faizabad and Chandni Chowk on Friday night, demanding that the government withdraw the new pricing policy.
Petrol pump owners Niaz Ali and Sheikh Waheed warned that the policy would destabilize the country’s oil supply system and urged the government to reconsider its decision.
The fare increases sparked disputes between passengers and transport operators throughout Saturday, while officials from the district administration and the regional transport authority also faced uncertainty over the implementation of the frequently changing fuel pricing mechanism.
