Is pricing scheme for petrol: increasing cost for bigger vehicles & reducing it for smaller ones workable?

A rather funny if not unworkable assignment has been awarded to the Petroleum Ministry. The assignment is to draft a strategy, “which envisages charging affluent consumers more for fuel, and using that money to reduce prices for the poor who have been hit hard by inflation, which in February was at its highest in 50 years.” [ March 24, 2023]

One would laugh if it was not a moment to cry, as it reflects on the complete dearth of logic in dealing with the issue.

First, larger vehicles include carry vans and trucks. This cost will be added to all consumer goods setting another drastic increase in inflation. Cost of products is same for all consumers. Unless the ministry is also going to build in a mechanism for cost of purchase of products tied in with the model of vehicle owned?

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Second, factories, construction materials too are transported in vans & trucks like cement, timber, sand, bajri. Cost will be passed on to the buyer.

Third, vans and buses have other purposes too besides carrying goods. Like people commuting from one place to the other. Public transport is usually used by the poorer section of the society who do not afford a bike or a small car. It is also used by schools to pick and drop students. Or certain parents jointly engage a van from a less affluent area at pick and drop timings. Both the poor or less affluent class will be hit.

Fourth, in homes where there is a small & a larger car, all that’s needed is for the small car to fill the tank & off load in the bigger car once home. Or borrow someone’s. Trust you me, this is exactly what will happen.

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Fifth, the business of car services like Careem & In-drive will be hit. Those affected will be the ones usually not affording a vehicle but have to be somewhere in emergency.

There are many caveats within in this populist idea that will backfire in the face of those creating this fiasco & implementing it. It will not work.

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The writer is a lawyer, academic and political analyst. She has authored a book titled ‘A Comparative Analysis of Media & Media Laws in Pakistan.’ She can be contacted at: yasmeenali62@gmail.com and tweets at @yasmeen_9

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