Gas pumps delayed the sale of fuel until prices were announced; prices have increased again
People wait for their turn to refuel at a gas station in Peshawar, January 30, 2023. PHOTO: REUTERS
RAWALPINDI:
The federal government’s recently introduced policy of frequent oil price reviews has sparked widespread concern in the transportation and business sectors, prompting immediate increases in public transportation fares, higher transportation costs and a threat of a nationwide strike by gasoline pump operators.
Following the latest increase in petrol and diesel prices announced on Friday evening, transport operators in Rawalpindi and Islamabad have revised their rates with immediate effect. Public transport fares have increased by 15-17%, while freight carriers have increased their freight rates by 20%. Transport associations also warned that fares would now be adjusted with each fuel price review.
Ride-hailing services for office workers and students have also announced that their rates fluctuate based on changes in petrol and diesel prices. The minimum stop-to-stop fare in public transport in the twin cities has been increased to Rs 60.
Long-haul transporters have also revised their rates, with freight charges for transporting containers, trailers and wheels between Karachi and Peshawar amounting to Rs 800,000.
The latest increase in fuel prices triggered panic buying in Rawalpindi and Islamabad on Friday evening. Following reports of an impending surge, gas stations in the Twin Cities temporarily suspended the sale of fuel, leading to long queues of motorists between about 9 p.m. and midnight. Fuel sales picked up after the 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 also increased their fares by 17%.
The Intercity Transport Association and Transport Federation have rejected the government’s policy of frequently revising fuel prices, describing it as the equivalent of introducing a “mini-budget” on an almost daily basis. They warned that if fuel prices continued to be revised frequently, transport fares would inevitably rise just as often.
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 revising prices of petrol and diesel daily or every few days, petrol pumps across the country would observe a nationwide strike and suspend their operations.
The Rawalpindi District Bar Association has announced that it will challenge the government’s fuel pricing mechanism in the Rawalpindi bench of the Lahore High Court, terming it unconstitutional and illegal.
District Bar President Tariq Mahmood Sajid Awan said frequent increases in oil prices amounted to imposing repeated mini-budgets without due legal process.
At the same time, the Transport Federation reiterated that the continued rise in fuel prices would inevitably lead to a corresponding increase 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 evening, 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 gave rise to conflicts between passengers and transport operators throughout the day on Saturday, while officials from the district administration and the Regional Transport Authority were also reportedly facing uncertainties over the implementation of the frequently changing fuel pricing mechanism.
