Former finance minister Miftah Ismail has criticized last week’s Rs. 55 per litre increase in petroleum product prices, saying the move has only increased the profits of oil marketing companies at the expense of consumers.
He said that petrol and diesel currently being sold by oil companies were imported at lower prices before February 28. There was no justification for raising fuel prices at this stage.
He argued that the decision would allow oil companies to earn higher margins on existing stocks purchased at cheaper rates.
The former finance minister added that the situation was similar to when the government permitted sugar mills to export sugar. While that decision increased the profits of mill owners, it ultimately resulted in higher prices and losses for ordinary consumers.
The current fuel price hike would have a similar impact, benefiting companies while increasing financial pressure on the public, he added.
