http://www.dailynationalcourier.com/national_courier/may2009_daily/14-05-09/artical/artical1.htm
Policy makers worldwide can learn a lesson or two to boost up revenue overnight from their counterparts here in this part of the world. Where else suppliers of such basic utility as electricity are allowed to fleece the consumers so ruthlessly despite providing power less than half a day; watery milk sellers to push prices to unaffordable level with such complete impunity; edible oil manufacturers to increase the price despite substantial reduction in international prices of crude palm oil? Where else a government not only fleeces its people through so many hidden taxes but also earns a whopping profit from sales of petroleum and products? Where profiteers are totally free to increase the prices of everything including the essential edibles like wheat flour, rice, pulses, sugar, tea, if and when they like without ever bothering about the writ of the government which is busy itself to fleece the people wherever it could.

The petroleum price mechanism introduced by the former despotic government linked the retail prices of petroleum and products to international price of crude oil. It, however, proved to be a cunning cover intended to cheat the people mercilessly because though retail prices of petroleum, diesel, kerosene oil, LPG and other products were increased to record Rs 88 per litre when price of crude touched record $ 148 the government flatly refused to reduce the price substantially when international price of crude dipped to $ 34 a barrel. In practice, the mechanism was intended only to increase the retail prices immediately when international price of crude increased but refused to pass on any benefit to the users when international price dipped to record low of $ 34 a barrel and hovered around it for months.

Just of mercilessly the government has fleeced the people is obvious from the remarks of Supreme Court Pakistan when it asked the government Tuesday to decide how much it intend to reduce the prices of petroleum and gas or let the apex court decide the matter itself. And this is what the judicial commission headed by respected former judge of the country's apex court Justice (r) Bhangwandas said into his interim report submitted to the SCP: "It is high time that the government should ponder seriously over reducing the burden of petroleum development levy and uniform general sales tax of 16 per cent"¦ freight rates, dollar rupee parity source, cost of refining, margins to distributors and dealers' commission too need to be rationalized"¦ The government is earning billions in profit by doing business with its own people." The interim report also shocked the people by suggesting to the government to retrieve Rs 15 billion from the "˜special reserves' kept by refineriess for future losses, upgradation of facilities and quality improvement "none of which was ever done". The Court also reportedly asked the government's counsels to explain what "future losses charge" is and why its being collected. The interim report also said that "refineries in Pakistan are producing inferior quality petroleum and diesel but charging a premium price for it since 2001. "Future losses charge"? Where else such stroke of ingenious flourishes than here. Policy makers worldwide can certainly learn a lesson or two from wise and noble policy makers here to boost up their respective national kitties.

Even crude statistics are enough to prove just how ruthlessly the godforsaken people of this country been cheated by their policy makers. A barrel of crude oil contains 158.987 litres (42 US gallon, 35 Imperial gallon)which means that when international per barrel price of crude hit low of $ 34 it translated into less than Rs 15 a litre and yet the benefit was never passed to the consumer.

Crude oil is perhaps the only products that yields more after refining because in most cases refining results in the shrinking by weight or volume. A barrel of crude oil yields over 7.5 litres more than the 158.987 litres it contain in various products after refining. A barrel of crude oil yields about 75 litres of petroleum, 73 liters of gas, 40 litres of diesel, 16 litres of jet fuel, 6.6 liters of Heavy Fuel Oil (Residual) and 6.6 liters of Other Distillates (Heating Oil). Coke, grease/lubricants and tar/asphalt are some of the other by products of crude oil after refining. All of these products are sold separately and are being used in such industries as fertilizers for agriculture, plastic toys and gadgets (bags, computer cases, etc.), bubble gums, car tires, perfumes, petroleum jelly, ammonia, washing liquids.

With so many products to sell the government has still find it fit to continue fleecing the people to earn a profit which reportedly make up almost 50 per cent of the retail price of Rs 58 a litre that it refuses to reduce despite substantial reduction in international price of a barrel of crude. Where else petroleum has become such a ruthless tool for profiteering by no one else but the government itself?