Even a roadside hawker selling vegetables would know that a fixed monthly pricing mechanism is prone to price fluctuation shocks and is utterly inefficient. And yet, our governments, previous and new, hold on to a monthly fixed pricing mechanism for petroleum products leading to chronic fuel shortages like the one being faced currently. The world uses a dynamic pricing model for its petroleum products where prices are determined by demand and supply factors. Has the government not learnt from past mistakes? Announcing a price reduction prior to June 1st just led every individual in the country to rush to fuel stations to fill their tanks to the brim. Of course there’d be a shortage. Like many others before me, I appeal to the government authorities to deregulate the petroleum prices. Spare yourself the agony and let the markets decide the prices of fuel.
Zuhair Ali Khan
Karachi
