In a move that appears noble on the surface but reeks of fiscal opportunism, the Government of Pakistan has maintained domestic petroleum despite a dip in global oil prices, making clear fuel price adjustments are only legitimate if they benefit the state, not the people.
Since assuming office, Prime Minister Shehbaz Sharif has repeatedly insisted that both hikes and drops in global fuel price will be passed on to consumers. He emphasized this in May 2022 and again in February 2023, explicitly stating any fluctuation in global oil markets would directly impact domestic fuel prices. Unsurprisingly, both statements accompanied massive hikes to domestic prices. Today, when global prices have dropped to roughly $5-6/barrel, this principle is conveniently ignored.
Legalizing the siphoning off a public relief as a source of revenue to fund “development projects,” the state has made clear the majority’s burdens are of no concern. Rather than channeling resources for the N-25 highway through the Public Sector Development Program, or the Balochistan government’s own resources, Islamabad is packaging the denial of relief as a public service initiative. The truth is far less flattering: rather than development, this is taxation masquerading as patriotism.
The burden for this road project, which will not benefit the vast majority who must now pay nearly Rs. 100/liter in taxes every time they refuel their vehicle or pay for transportation of goods, falls on the average consumer. Making matters worse is the complete lack of transparency regarding this project: the government has decided to impose additional taxes on the public without even approving any new project for Balochistan. Effectively, the government is asking citizens to fund infrastructure most will never avail through their gas tanks—while still being overburdened with inflation and utility tariffs.
The government’s emotional appeals in the “national interest” have become all too familiar. When fuel prices surge, officials swiftly plead with the nation to “bear the pain” for the sake of the country. Yet, when prices fall, there is no decline in the suffering. The narrative of sacrifice is one-sided; the state is always in need, and the people are always asked to give, never receive.
The government has also failed to justify the sustainability of its decision. What happens when international oil prices inevitably rise again? Will the government abandon these projects mid-stream or will fuel prices be hiked further to sustain them? Either scenario reflects the fragility of such planning. Sustainable development cannot be funded through the volatile backdoor of fuel taxes.
Pakistanis deserve transparent, institutional development. Levies sold as patriotic duty are merely exploitation in the guise of progress.