It’s important to note that the break-even price is just one factor to consider when deciding whether to extract oil. Other factors, such as environmental impacts and the availability of alternative energy sources, can also influence the decision to extract oil.
The price of crude oil had been reduced in the international market petrol. The price has been reduced from 113 dollars per barrel to 75 Dollars per barrel. With international fuel prices this down, they are still not doing enough. They have taken 7 months to reduce prices already saved up enough. Maybe they are saving for Nawaz Sharif’s entry since we had been hearing a 35 to 42 Rupees per litre discount.
The government could not increase the petroleum levy because it had already reached Rs.50/L as passed by the National Assembly during Miftah’s tenure. The only option left was to increase the sales tax, but the government decided to give relief and lower the public’s anger instead.
A Satirical Approach
Pakistan is short of dollars. I guess their policy is to print Pakistan Rupees. I borrow Rs 200K and buy a cow for Rs 80K and sell it for Rs 100 K I then return Rs 220K (interest included) and end up with cow dung. Now in KPK, we gonna use that poop to make “naswar” causing no major health issues. So the joke is on WHO. In Punjab, we burn “pathis” and improve Air Quality. In Sindh, that goes to Engro straight for a fertiliser that is sold with high-profit margins to Baluchistan. Some of the cow dung is smuggled to Afghanistan via Chamman in return for expensive cars that run in the DHAs.
Our policies should be independent of vote banks and should serve the long-term interests of the people. Government should take rational steps:
- By imposing taxes on ultra-rich industrialists and landlords.
- By conducting newer explorations.
