More fuel price shocks in pipeline

Commenting on recent increase in domestic oil prices, the senior government official remarked that it was just beginning and the consumers would continue to bear oil shocks by December 2008.

The oil import bill and the provision of subsidies have become unsustainable for the state exchequer, as a result the government had been left with no option but to share this burden with the consumers, he added.

The official said that the government and the consumers would have to minimise the use of oil and electricity to reduce the cost of import bill.

All over the world the energy conservation plans had been put in place due to unprecedented hike in the oil prices, but in Pakistan the traders’ community was not willing to shut down shops at 9 pm as a result the energy-saving plan through advancing the clock by an hour had ended in fiasco, he said.

Worth noting is that the crude oil exporting countries have amassed an unbelievable additional amount of around 2 trillion dollars in last three years, from 2005 to December 2007, by making a well-meditated increase in the world crude oil prices during this period.

In 2004 the average crude oil price was calculated at 36.05 dollars a barrel which was raised to 50.64 dollars in 2005. In 2006 this price was further increased to 61.21 dollars while the average crude oil price in 2007 was at 72 dollars. The energy sector analysts have estimated 122 dollars worth average crude oil price in 2008. But the current crude oil prices have settled near 145 dollars/barrel.