Oil Prices Hike
By the Editor

WITH the rise in international oil prices to all time high at $88 a barrel is ringing alarm bell around the globe and even the most developed countries have been saying that they were facing economic pressure from the meltdown in the sub prime mortgage market.

Pakistan as a developing economy cannot remain in isolation and is definitely to be affected in the short and long-run unless and until an emergency plan is chalked out and implemented.

As per data oil prices averaging $ 67 this year are closing into $ 90 per barrel and the reasons being given by manipulators and oil cartel are tensions between Turkey and Iraq, increase in world energy demand and tight inventories in consumer nations heading for winter as well as weakness in the US dollar.

There was a slump in oil prices a few years back when they averaged $25 a barrel but then there was constant major surge and no going back irrespective of the world situation.

Yet, there is a general feeling among the consumer nations that the major oil companies were manipulating the situation and raising oil prices under the pretext or the other and minting dollars under the pretext of higher demand and there is no control over them either by the producing countries or by the major powers as the owners of these companies paid millions in cash to their leaders during their election campaigns.

In Pakistan the energy demand is on the rise because of a buoyant economy and increase in the use of private cars. All sectors of the economy will be affected when the impending increase is made effective any time.

Amid such a scenario, we are ought to exploit our indigenous energy resources including the vast coal reserves and gas.

By now, it appears that the authorities concerned are not pushing the establishment of coal based power generation plants, for unknown reasons, despite tall claims that foreign companies were interested for utilisation of Thar reserves.

As a matter of fact, we must offer massive incentives for exploration of oil and gas resources in the country particularly the gas rich Balochistan and Sindh Provinces.

As realists, we urge the Government that a master plan be drawn up to conserve energy utilisation through diverse alternatives like mass transport systems in major cities and exploitation of domestic energy resources to offset the impact of ceaselessly rising oil prices and to save our economy – with enunciation of on-time policies.●