Industrialists slam govt over petrol price hike
The collection of PDL at Rs60 per litre on the sale of petrol and diesel, coupled with the full pass-through of increased global energy prices to local consumers, remained the single largest reason behind the historic plunge in demand. Photo: REUTERS
Industrialists and traders have slammed the government over the recent increase in petrol prices, which they claim is driving up the cost of all essential commodities and making life miserable for poor daily-wage earners. They have appealed to the government to take immediate initiatives to reduce the cost of industrial inputs such as electricity, gas, and petroleum products to revive the economy and save businesses from collapse.
They acknowledged that the hike in petroleum prices was in line with international market trends but argued that, given the nation’s severe inflation burden, the government should have absorbed some of the impact by reducing the excessively high petroleum development levy. Instead, the full burden was passed on to consumers.
The business community, as well as salaried individuals, are still reeling from heavy taxes imposed in the recent budget, and now they are also facing rising petroleum prices. This surge, they say, will negatively impact industrial production and further increase the prices of household commodities.
The unbearable costs of energy tariffs have already forced many Small and Medium-sized Enterprises (SMEs) to shut down operations. This runaway unemployment among industrial workers has exacerbated street crimes in Karachi, where residents are regularly deprived of their belongings and lives.
Muhammad Najib Balagamwala, Chairman of Seatrade Group of Companies, stated that raising petrol prices pushes up the cost of all commodities and produce, including wheat, wheat flour, pulses, ghee, cooking oil, vegetables, and fruits due to a significant rise in transportation fares. The implementation of the Axle Load Regime (ALR) has already caused a 40% increase in transportation fares across the country.
Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Ahmed Sheikh expressed sheer disappointment over the hike in petroleum and diesel prices by Rs7.45 and Rs9.56, respectively. He stated that the significant increase will not only raise the cost of doing business but also affect all segments of society, worsening hardships for the public.