KARACHI: Trade and industry leaders said that the Rs13.55 per litre increase in petrol price will hit all segments of society and multiply the financial woes of the general public.

They said they were expecting a Rs5-9 per litre hike but it was unfair on the part of the government to blatantly raise the price.

Karachi Chamber of Commerce and Industry (KCCI) President Ifti­khar Ahmed Sheikh said the increase in diesel price would also push the cost of doing business and have a fallout on industrial production.

When the rupee-dollar parity has attained some stability nowadays, this hike in petroleum prices was not making any sense which, if necessary, should have been raised by a minimum of Rs5 per litre to pass on the minimum impact on the poor masses who were excessively overburdened in the ongoing era of high inflation, he said.

The government has been charging Rs60 per litre petroleum levy which is the maximum permissible limit under the relevant law. To minimise the hardships, the government should have reduced its petroleum levy to some extent to deal with the price difference in local and international markets which unfortunately was not done, the KCCI chief said.

Leaders say rising cost of doing business hampering activity

The caretaker government continues to make ruthless decisions in the form of raising petrol, gas and electricity prices to squeeze the public and the industries which was unacceptable, he said, adding that the business community was also expecting a cut in key policy rate by at least 100 basis points to send a positive signal but unfortunately, it has also been kept unchanged at 22pc despite State Bank’s claim about inflation falling in the range of 23-25pc.

Korangi Association of Trade and Industry President Johar Ali Qandhari said despite a stable dollar, the POL price hike is unjust which will unleash a storm of inflation, further burdening the common people.

The government could have deferred the hike in petroleum prices given the ongoing challenges being faced by the people. Alternatively, if a price increase was deemed inevitable, Mr Qandhari proposed that the government should have reduced tax and levy rates to alleviate the financial strain on the public and withdraw the increase in petroleum prices.

Published in Dawn, February 2nd, 2024