FOCUS
|||MAG||| August 30 - Sept 05, 2008
And Now The Fares…
By Farhat Hussain

FOCUSThe government's grip over the price-hike is becoming looser and looser with the passage of each day. Anti-state elements, opportunist circles and corrupt bureaucrats are at large and are seen busy in plundering the masses. The “champion” political parties, claiming to have a heavy mandate of the masses, are avoiding facing their voters; instead, they have put the nation onto other issues, like the reinstatement of judges, etc. On the other hand, the masses are confused and mystified and there is no one to listen to their agonies.
he price of petroleum products including petrol, diesel, kerosene oil, etc. has gone up by leaps and bounds. All these raises, since the present government came in, are not ordinary but unusual ones. The escalation in the price of petroleum products is the factor which directly and promptly affects the common people whereas this raise gives direct benefit to the privileged class, oil companies and community attached to the oil business. Although the government had linked the rise in prices with the rise of international prices but it did not transfer the benefit of the fall in prices in the international market. The continuous fall in prices at the international level is being enjoyed by the government to lessen the budget deficit. For this purpose, the petroleum sector has become a “golden bird” for the government.
By retaining the price of petroleum products in the second fortnight of August, according to a news report, the profit of the government has been augmented from Rs. 5.50 to Rs. 19.63 per liter. This has enhanced the income of the government by more than Rs. 14 per liter. According to reliable sources, the government's income under the head of the petroleum development levy has also been increased. If the income and the subsidy paid by the government is analyzed, some astonishing facts would be seen. During the last few days, the income on HOBC has increased from Rs. 7.82 to Rs. 20.73 per liter whereas the subsidy on kerosene oil has decreased from Rs. 29.41 to Rs. 18.47 per liter and that on light diesel from Rs. 25.16 to Rs. 16.82 per liter. All this has improved the financial condition of the government but the poor and helpless people have been silently ignored.
The price of petroleum products in Pakistan was increased and then retained at a time when a trend of prices decreasing was seen in the international market. Last month, the OPEC countries reviewed the situation created by the ever-increasing prices. In the meeting, declaring the situation non-natural, it was decided to take steps to bring down the prices. Saudi Arabia announced that it would increase production by 2 lakh barrels of petrol per day forthwith.
The government of Pakistan seems to have failed in accurately observing the fluctuation in prices of petroleum products in the international market. By taking a cursory look at the Oil and Gas Regulatory Authority's (OGRA) summary and not taking the miseries of the poor masses and the economy of the country into consideration, the authorities issued directives to make a record raise in prices. These hurriedly-taken steps made it seem as if the government had been hijacked by the oil companies. The OGRA has totally failed to discharge its responsibilities sincerely and honestly. It has come under the influence of oil companies. The apparent proof is that the petroleum companies had stopped the supply of their products much before the announcement and even after the issuance of the notification regarding an increase in the prices. Supply was restored only after the release of notification while the people attached with the business of petrol and oil were overflowing with wealth whereas the poor masses are still lamenting on their wretchedness.
The release of the new price list of petroleum products is the responsibility of the Oil and Gas Regulatory Authority (OGRA). Before issuance of the notification, all such matters are of a highly confidential nature and are kept as state secrets. Here the question arises, how did the oil companies and the petrol pump owners come to know about the raise in prices? This is a very sensitive issue which should be investigated. The announcement of the record increase in the price of petroleum products inflicted a big blow on the masses and their agonies increased. Acquiring basic commodities and the necessities of the life had already been a very difficult job for the common people, whereas the increase in petroleum prices has intensified the situation. The government's grip over the price-hike is becoming looser and looser with the passage of each day. Anti-state elements, opportunist circles and corrupt bureaucrats are at large and are seen busy in plundering the masses. The “champion” political parties, claiming to have a heavy mandate of the masses, are avoiding facing their voters; instead, they have put the nation onto other issues, like the reinstatement of judges, etc. On the other hand, the masses are confused and mystified and there is no one to listen to their agonies.
After the increase in the price of petroleum products, various transport organizations of the country announced an indefinite strike and wheel jam all over the country. They were collectively demanding of the government to withdraw the increase in the price of diesel immediately. They were of the view that the poor masses had already been the victims of many price hikes and they would not be able to bear the financial and economic burden. These remarks were welcomed by the masses and they were happy that there was someone to notice their agonies. But this exhilaration did not last. Immediately after the announcement of the strike, the Government of Sindh sent out the good news of increasing fares to the transporters. The transporters happily accepted and withdrew the announcement of an indefinite strike. Now, with the release of the notification by the transport department of the Government of Sindh, the fares of buses, minibuses, coaches and other transport have been increased throughout the province including Karachi. All this shows the weakness of the government, the deal between the concerned authorities and the transporters organizations, the personal interest of the small and big transporters, and the helplessness of the masses.
Whenever the rates of the transport fares are revised, the authorities issue “formal” orders to the transporters to abide by the law and follow the public vehicle code. According to the Motor Vehicle Act, a route permit is issued to a vehicle in excellent condition (having sound engine, active brakes, standard tyres, seats and bodies). Big buses are allowed to accommodate 50 sitting and 10 standing passengers and the same is the case with minibuses and coaches where the number of passengers is restricted to their capacity. According to law, proper inspection of the condition of a public vehicle is necessary after every six months and a route permit is renewed after fulfilling the same requirement. On the production of a satisfied fitness certificate from a recognized mechanical workshop, the route permit is renewed. Simply by observing the conditions of the buses and minibuses, can it be said that they are being regularly examined? The owners and drivers either do not bother to get a route permit or get its renewal after greasing the palms of the authorities. It is also an alarming situation that to avoid legal formalities, bus and minibus owners do not apply for a route permit and more than half of the vehicles of public transport are being plied without a route permit in the city. Are the provincial transport authority, traffic police, vehicle inspectors, and others concerned discharging their responsibilities honestly and truthfully? Who are the owners of most of the buses and coaches? This is very well known by the government as well as the masses. In such a situation, who can take action against the transporters to abide by the public transport law?
In big cities, generally, and in Karachi, particularly, the buses are filled to passengers from the starting terminal. In a 60-passenger capacity bus, 100-125 passengers are packed in and, till the last stop, the passengers continue to enter and alight. In one trip alone, from the initial point to the final stop, an average of 250 to 300 passengers travel. A bus takes almost five trips in a day and a total 1,200 to 1,500 commuters use a bus daily. The rate of fare of a large bus ranges from Rs. 10 to 15. If the minimum fare is Rs. 10 per passenger and an average 1,000 passengers are taken, a transporter collects Rs. 10,000 per bus per day. After deducting police bhatta, wages of driver and conductor, remuneration to time keepers, wear and tear and maintenance of the vehicle, diesel consumption, a transporter could easily save Rs. 3,500 to 4,500 per bus per day before the increase in the price of diesel and the revision of fares.
Diesel prices were increased by Rs. 9.49 per liter as a result of which the income of the transporter per bus per day was reduced to Rs. 400-500 but still he was earning Rs. 3,000 to 4,000. But then, they started crying about the raise in diesel prices and threatened to go on strike. Blackmailed, the government announced that it would revise the fares and a minimum of Rs. 2 were increased in the fare as a result of which the daily per bus income of the transporter was also increased to Rs. 2000-3000. After deducting the deficit of Rs. 500 due to the price of diesel, the additional income comes to Rs. 1,500 to 2,500 which is a net profit to an already profitable business. On the other hand, there is no one to listen to the cries of the poor masses, whose purchasing power has been diminished to almost zero, especially after the raise in bus fares. On average, three people of a 6-member family travel in public transport daily for a job, business, education, medical treatment, and other necessary domestic chores. Due to the 2-4 rupees raise in fares, a family has to bear an average Rs. 40-50 per day additionally which comes to Rs. 1,200 to Rs. 1,500 per month. Although the government has doubled the conveyance allowance of its servants, what about the servants of private organizations and others? The government should also take their miseries into consideration.
The government's coming into power is due to the mandate given by the masses in the elections. Before increasing the fares, the masses should have been taken into confidence but the government did not do so. Decisions like these, which affect everyone, can flare up into big trouble. The government should adopt the way of consensus and harmony and the decisions which affect the masses directly or indirectly should be taken after seeking their trust. Unilateral decisions will only harm the government and its credibility.

 

 

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