ISLAMABAD: Traders and businessmen have welcomed the apex court’s decision to withdraw carbon surcharge on petroleum products, and hoped that the inflationary impact of high fuel prices would also be reversed.

However, talking to Dawn the petroleum dealers have expressed concerns about inventory losses to be suffered by the petrol pump owners.

‘The rates of petrol and diesel have been lowered and the dealers would suffer,’ said Abdul Sami Khan, chairman of the All Pakistan Petroleum Dealers Association.

He said the decision should have given some time so that the dealers could adjust their stocks. A sudden increase or decrease in prices was not suitable for the industry, he added.

Besides, the CNG dealers have also expressed fears that the consumer patterns would shift towards petrol if the price range between petrol and the compressed natural gas was very low.

‘If the narrow gap between the prices of petrol and the CNG remains there for too long it might have a negative impact on both the fuels,’ said a member of the CNG dealers association, adding that the CNG sales might suffer while the country would be required to import petrol due to its high demand.

‘Under such a condition the CNG dealers would have to give discounts to attract customers,’ Sami Khan said.

But these views were contested by Wasim Raja, leader of CNG dealers Association northern Punjab chapter. He said CNG gave around 40 per cent higher mileage as compared to petrol. ‘CNG user is a middle class customer and the petrol was still out of range for a large number of vehicle owners,’ he added.

However, contrary to the petroleum dealers, the business community has welcomed the decision of the Supreme Court to suspend the collection of carbon surcharge on petroleum products.

Mian Shaukat Masood, president of the Islamabad Chambers of Commerce and Industry, welcomed the decision, calling it the voice of the masses. He said that the government decision was ‘irrational.’

‘The electricity rates are already too high and with the increase in fuel prices the economic condition of the masses was getting severely depressed,’ Mr Masood told Dawn.

‘If the oil prices increase further in the international markets then the government would raise the price of petrol and diesel to Rs100 per litre,’ he said. The ICCI leader maintained that the government would be able to earn more revenues and generate more resources when the business environment would be more conducive.

Meanwhile, Malik Sohail Hussain, leader of the Traders Welfare Association Blue Area, in a statement said that affordable oil prices would result in reduction of inflation.

‘With better affordability and higher liquidity, (the) country will have an increased investment climate compared to tight financial position of the masses and the business community.’ Mr Hussain said businessmen invested and the consumers purchased products thus rolling the wheel of prosperity.

He said it was the duty of the government to ensure that the inflationary impact witnessed in past few months was reversed. The transport fares and prices of goods needed to be looked into by the concerned agencies, he added.