Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Acting President Muhammad Suleman Chawla has strongly rejected the massive hike in the prices of petroleum products.
In a statement, Chawla said that the hike will ruthlessly fuel the existing inflationary pressures even further, resulting in a multiplier effect of an upsurge in the cost of living and cost of doing business – which is already the highest in the entire region.
Chawla explained that the apex body forewarned the authorities a number of times over the last few months that they need to address the teething problems in the import of Russian crude, i.e. handling of oil cargoes, adjustments required vis-à-vis refining processes and commercial transactional procedures to settle oil payments. He claimed that Russian crude is 35-50 percent cheaper compared to international markets.
FPCCI Vice President Engr. M. A. Jabbar said that just two weeks ago, the authorities announced a Rs. 7.50 per unit increase in electricity prices, and the prices of petroleum products were also increased. He said that both steps were taken despite FPCCI’s repeated demands that electricity and petroleum prices should be stabilized by curtailing the distribution and line losses and reducing systemic inefficacies.
Jabbar also questioned how the export orders-in-hand can be met in a profitable manner after the triple blow of electricity tariff increase and petroleum price hikes twice within a short span of 2 weeks, resulting in uncertainty and price instability.
Source: Pro Pakistani