Although it has been 15 months since the new government assumed power pledging in its Presidential election manifesto to implement a fuel pricing formula, it is disappointing that it has not been implemented yet, a top analyst said last week.
“Fuel prices should NOT be a vote buying tool for its an imported commodity – by incorrectly pricing fuel through post tax subsidies we are transferring wealth to oil exporting countries due to excess consumption, reducing the incentives to develop alternate energy sources and depriving the treasury of much needed revenue to spend on social investments like health and education and/or contribute towards fiscal consolidation,” CEO of JB Securities Ltd. Murtaza Jafferjee said.
According to him, on 19 January Brent oil touched a low of USD 28.0 a barrel and it has been rallying ever since and is currently trading at USD 41.5 – one is not sure where it is heading.
“This is a once in a generation opportunity to implement the promised fuel pricing formula under benign market conditions and depoliticises fuel prices. Now or never!,” he said.