At the end of every month, consumers always hold their breath hoping that fuel prices will go down. In some months their expectations are met, in others they are dashed.
This month, the Energy Regulatory Commission (ERC) has no pleasant news for consumers especially poor households who use kerosene for lighting and cooking. The new set of prices has touched almost a three-year high, immediately sparking concern that inflation is likely to jump, dragging up the cost of living.
The price controls introduced by ERC were meant to stabilise prices and avoid the kind of volatility we have witnessed in the recent first.
Apparently, this measure is not meeting the objective for which it was introduced. Consumers and the economy are still subjected to the vagaries of the see-sawing global crude oil costs.
When fuel prices sharply rise without notice, consumers feel double impact. Aside from the pain at the pump, they are also compelled to shoulder the no less painful burden of a steep rise in commodity prices.
With price controls proving ineffective, an alternative and more ingenious solution should be found. There are plans to expand and revamp storage facilities to enable the country stockpile when global oil prices are low.
This looks like a sound move and should be implemented as soon as possible.
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