Although local oil refineries have continued to consume billions of rupees according to their duty over the years, they have failed to provide better fuel to the public and have become a financial burden for consumers.
From now on, the government has further increased the inner margin of freight of freight (IFEM) on high -speed diesel of more than RS1.50 per liter under pressure of oil refineries and oil marketing companies (WTO). This decision will impose an additional burden of around 34 billion rupees on consumers over the next year.
For more than two decades, local oil refineries have perceived a right considered to be 7.5% in the prices of consumer petroleum products. This duty was intended to help them improve their plants and produce petroleum products that meet international standards, in particular diesel with a lower sulfur content – sulfur being a major cause of cancer and other diseases.
But what was the result? Billions of rupees have been collected, but refineries have failed to upgrade their systems or offer cleaner fuels. In fact, none of the approximately half a dozen local refineries in Pakistan can currently produce fuel in accordance with the Euro-V, which is the global standard to reduce atmospheric pollution linked to vehicles.
This failure had disastrous consequences. Atmospheric pollution in Pakistan, especially in big cities like Lahore, Karachi, Faisalabad, Multan and Rawalpindi, has worsened considerably. The lower quality fuel is a key contributor to SMOG. The toxic emissions of high sulfur diesel and low -grade gasoline stifle the environment and public health.
Meanwhile, oil marketing companies and fuel dealers also extract great profits. With a margin of RS16.51 per liter on essence and diesel, they continue to benefit massively to the detriment of the common citizen.
According to official sources of the OGRA, Pakistan consumes approximately 832 million liters of petrol and 670 million liters of diesel each month. This means that even a small increase in margins leads to a significant financial impact on the masses.
Sources of the oil and OGRA division confirm that the Economic Coordination Committee (ECC) has approved the increase in interior freight margins, mainly to eliminate exceptional contributions due to WTO and refineries since the government has been zero the TPS on petroleum products.
There is also a proposal to increase the inner freight margin on petrol, which could lead to a new increase in fuel prices and household expenditure.
In addition, OGRA sources indicate that the ECC has now set the maximum limit of oil withdrawal to Rs90 per liter. Currently, consumers are already paying 78.02 rupees per liter in petrol and 77.01 rupees per liter on diesel in the form of oil withdrawal alone.
Despite billions collected in the name of renowned duty, local refineries have hardly made money from pocket consumers. Their inability to modernize has contributed directly to the worsening of environmental pollution and growing health problems.
Now, as the government once again yields to industry pressure, the cost is transmitted to the public – which continues to suffer financially and physically due to lower quality fuel and price increase.