FPCCI president urges petroleum price cut

FPCCI president urges petroleum price cut

Our Correspondent November 14, 2023


Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Irfan Iqbal Sheikh has called upon the federal government to implement a significant reduction of Rs18 – Rs20 per litre in petroleum prices. He highlighted the declining trend in international oil prices despite ongoing conflicts and supply cuts announced by major oil-producing nations like Saudi Arabia and Russia, extending until December 2023.

In a statement on Monday, Sheikh expressed his anticipation that these significant oil producers would continue their cuts even beyond the slated date.

Pointing out that international oil prices have dropped to $81.30 per barrel, significantly below the 50-day moving average of $85.70, he stressed this as an indicator of a bearish global oil demand outlook. He referenced statistics showing reduced demand from the US and China, with US reserves reportedly increased by 11.9 million barrels. These trends collectively signify a downturn in the global economy, a situation exacerbated by ongoing conflicts in regions such as Russia-Ukraine and Israel-Palestine.

Read: Rs34 fall in petrol price likely

Sheikh emphasised the crucial role of petroleum prices in alleviating inflationary pressures, especially in the context of the ongoing International Monetary Fund-Standby Arrangement (IMF-SBA) review. He suggested a logical downward revision of the State Bank of Pakistan’s (SBP) policy rate from 22% to 20%, aligning it with the core inflation rate of 18.50% recorded in November 2023.

Published in The Express Tribune, November 14th, 2023.

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