OIl price reduction has not reduced commodity prices, when it is raised slightly, prices will instantly jump up
CHITRAL: There has been substantial decrease in petroleum price in Pakistan in line with the world wide oil price tumble. The reduction in price of petroleum and related products in Pakistan has had virtually no effect on the price of everyday consumer items and commodity products. The reason for this is the lack of government control on price fixation. Pakistan has come to a stage where governance has lost it’s influence and control on markets and businesses. May be it can never be reverted, due to the haphazard and ever burgeoning population growth. The solution may be to allow a totally free market economy so that the market makers compete with each other for sales.
The implication of reducing oil prices without ensuring the reduction in commodity prices can be detrimental to the common man, in that when the price of petroleum is even increased slightly, the market makers will increase the prices of all consumer items from here blaming it on the rise in price of petroleum. The government will be unable to check it just as it is unable to check the refusal of price reduction now. So what is supposed to be a blessing for the common man may turn out to be a curse in the end. .. CN report, 15 June 2020