Industries demand oil price reduction

Point out rate hike is in stark contrast to economic transformation plan

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KARACHI:

Industrialists have condemned the recent hike in diesel and petrol prices and urged the prime minister to take action and reduce the rates.

On the one hand, the PM announced the Uraan Pakistan programme while on the other hand, institutions were raising prices of petroleum products, which reflected a stark contrast in policies, the industrialists said.

According to a notification issued by the finance ministry, the Oil and Gas Regulatory Authority (Ogra) had worked out consumer prices of petroleum products in view of fluctuations in the international market. The price of high-speed diesel (HSD) was increased by Rs2.96 per litre, up from Rs255.38 to Rs258.34 per litre.

Similarly, the price of motor spirit (MS), or petrol, was raised by Rs0.56 per litre, up from Rs252.10 to Rs252.66 per litre.

SITE Association of Industry (SAI) President Ahmed Azeem Alvi said Prime Minister Shehbaz Sharif launched a five-year national economic transformation plan titled "Uraan Pakistan", aimed at addressing the economic issues being faced by industries, boosting the national economy, achieving a sustainable export-led growth and more.

Industries were playing multiple roles in bolstering the economy, while generating job opportunities, hiring workers, bringing foreign exchange and supporting the local community, he pointed out.

Alvi said institutions increased the price of both diesel and petrol within 24 hours of announcement of a comprehensive plan to bring about higher economic growth. This demonstrated that institutions would follow their own established goals, without embracing the prime minister's vision for growth.

Unfortunately, the country's institutions have done the same for decades, which stifled Pakistan's progress and development. Once the country starts making progress, hurdles are created in the way.

"The PM must take action against the rise in petroleum product prices and a probe must be initiated against those who pushed up the rates. After the announcement of the five-year plan, old rates should have been maintained as the increase negates the PM's strategy," Alvi said.

Federal B Area Association of Trade and Industry (FBATI) President Shaikh Muhammad Tehseen fretted about the petroleum price hike, saying the government should slash retail prices of petroleum products through the reduction of taxes rather than surprising the masses and business community by increasing prices.

The government is consistently increasing the cost of doing business for industrialists and traders, mainly for small and medium-sized enterprises, which are already struggling to do their business amid various challenges.

Even a slight increase in prices of petrol and diesel pushes inflation up, impacting the cost of living and the cost of production, he said. Various utility prices have already registered a notable surge in the last one and a half years, including gas and electricity.

He asked the government to reduce prices of petrol and diesel to pass on relief to the masses and businesses across the country.

Echoing similar views, Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) former president Muhammad Farooq Shaikhani denounced the unjustified increase in petrol and diesel prices.

He said the increase appeared to be an exploitative measure, targeting the already struggling businesses and consumers, further fuelling inflation and eroding the purchasing power.

He demanded that the government immediately reverse the decision and prioritise policies that could provide relief rather than imposing unwarranted economic burden on the public. This persistent cycle of unjust price hikes must come to an end to restore trust in the government and improve economic stability, he commented.