ISLAMABAD: Main opposition parties criticised the government on Saturday for its alleged failure to provide relief to citizens following the continuous decline in oil prices in the international market.

Reacting to the announcement made by Prime Minister Nawaz Sharif regarding a Rs5 per litre reduction in oil prices, opposition parties criticised the government for not accepting the recommendations of the Oil and Gas Regulatory Authority (Ogra).

Ogra, an independent body tasked with regulating the prices of oil and gas in the country, had recommended on Friday a reduction of up to 21 per cent in prices of petroleum products for February, based on existing tax rates.

Decision to ignore Ogra summary recommending further decrease criticised

In a summary sent to the government, Ogra had recommended that the price of petrol be reduced by about 10pc, high speed diesel by 13.6pc, kerosene by 20.38pc, light diesel oil by 19.6pc and hi-octane by 14.4pc, if the government wanted the current tax rates to continue.

The Pakistan People’s Party (PPP) termed the reduction in oil prices “insufficient”; the Pakistan Tehreek-i-Insaf (PTI) called it a “cheap joke”, whereas the Muttahida Qaumi Movement (MQM) accused the government of exploiting oil prices as their main source of revenue.

Quoting from an Ogra official’s reported statement, PPP’s parliamentary leader in the Senate Saeed Ghani said that prices could have been brought down by up to 50pc if the general sales tax (GST) rate was reverted to the normal 17pc.

Talking to Dawn, Mr Ghani asked the government to reduce or at least freeze taxes on oil prices if it really wanted to provide some relief to people. He said it was strange that whenever prices were reduced, the prime minister made the announcement himself; but when there was an increase or no change, the people were informed through a notification.

Mr Ghani was of the view that with this announcement, the government should also announce a reduction in the prices of electricity and transport fares.

MQM’s parliamentary leader in the National Assembly Dr Farooq Sattar regretted that each government used the oil prices as a major source of its revenue collection to meet it’s over-ambitious tax targets.

The MQM leader said that by not passing the actual relief on to the people in accordance with the oil prices in the international market, the rulers were not only hiding the “incompetence” of the Federal Board of Revenue (FBR), but their failed economic policy too.

In an apparent reference to the prime minister’s statement that the world was acknowledging and appreciating the economic gains achieved by his government, Dr Sattar said that on one hand, the rulers were making tall claims about improvement in the state of the economy, on the other the people’s standard of living was constantly declining.

PTI Information Secretary Naeemul Haq said in a statement that the rulers’ attitude showed that they were only interested in amassing wealth instead of providing relief to citizens. He alleged that the government had shown “complete stubbornness” by rejecting the Ogra’s summary which had called for up to 21pc reduction in oil prices.

“The government is purchasing oil at a cheaper rate and selling it to people on higher rates. What will you call this act other than tyranny?” he asked.

Terming it an “economic murder” of people, Mr Haq said the PTI had been surprised to see the “rulers’ lust for the money”.

Mr Haq asked the government to reduce oil prices as per the recommendations of Ogra, in order to minimise the difficulties of people.

He also urged the government to take steps to control price-hike and devise a mechanism to provide relief to people in accordance with the reduction in the prices of petroleum products.

Published in Dawn, January 31st, 2016