Businessmen condemn POL price hike

Criticise govt for maintaining maximum limit of Rs60 per litre in petroleum levy

KARACHI:

In a move met with strong resistance, the caretaker government’s decision to significantly raise petroleum product prices has sparked serious concerns among business leaders. The move, denounced by various industry representatives, is anticipated to escalate inflation, posing further challenges to industrial production in the country.

The recent hike in petrol and high-speed diesel (HSD) prices by Rs13.55 and Rs2.75 per litre, respectively, has set petroleum product rates at Rs272.89 and Rs278.96 per litre.

Karachi Chamber of Commerce and Industry (KCCI), President, Iftikhar Ahmed Sheikh, expressed dismay, stating that while an increase of Rs5 to Rs9 per litre was expected due to rising international prices, the unjustifiable spike of Rs13.55 per litre would disproportionately impact all segments of society. Sheikh warned that this move would exacerbate hardships for the general public and significantly affect industrial production, as the cost of doing business would inevitably rise.

Read CCI approves amendments to petroleum policy 2012

The KCCI president criticised the government for maintaining the maximum permissible limit of Rs60 per litre in petroleum levy, suggesting that reducing this levy could have mitigated the impact on the public. He denounced the caretaker government’s consistent pattern of making harsh decisions, including raising petrol, gas, and electricity prices, as unacceptable.

Speaking to The Express Tribune, President of the Hyderabad Chamber of Commerce and Industry (HCCI), Adeel Siddiqui warned that the petrol price hike would negatively impact the national economy, leading to increased charges for freight transportation services and electricity. He expressed concern for SMEs on the brink of collapse due to escalating utility bills and water shortages.

Published in The Express Tribune, February 3^rd, 2024.

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