FPCCI shocked over petroleum price hike

FPCCI shocked over petroleum price hike

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday expressed shock and dismay on massive increase in prices of petroleum products.

FPCCI Acting President Shabbir Hassan Mansha in a statement expressed his shock and awe at the astronomical increase in the prices of petrol and diesel.

READ MORE: Pakistan braces for worst food inflation: FPCCI

Increase in petrol price by Rs. 24.03per liter will crush the masses and Rs. 59.16per liter in diesel price will have a multiplier effect on goods transportation costs; which will drive the commodities and food supplies prices even further, he added.

Acting FPCCI Chief maintained that it is imperative to weigh in the impact of the prior petroleum prices as well; because even before the latest increase prices were also raised twice in a short time span of merely two weeks. Therefore, we are faced with a third major raise in the prices of petroleum products within 20 days – cumulatively raising the petrol price by Rs. 84 / liter, i.e. 56 percent and diesel price by Rs. 144 per liter, i.e. 83 percent.

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Shabbir Hassan Mansha has apprised that a massive goods transportation crisis is in the offing as there is no way the transporters can absorb 83 percent raise in the diesel price. He has called upon the government to act and act fast.

Shabbir Hassan Mansha also pointed out that the grapevine is that the government is also mulling the proposal to re-impose petroleum development levy (PDL) and the business community is not sure where this unpredictable, aggressive and anti-business upward price spiral will stop.

Shabbir Hassan Mansha emphasized that the real impact of the petroleum prices will reflect in consumer price indices in 4 – 8 weeks and the government should swiftly come up with a protective mechanism for the small & medium enterprises (SMEs); else the skyrocketing increase in cost of doing business will push the country towards historical bankruptcies in the SMEs and the resultant unprecedented unemployment.

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Acting FPCCI Chief also expressed his profound concerns over massive electricity tariff hike of Rs. 7.91 / kWh; resulting in Rs. 24.82 / kWh base tariff for the year 2022 – 23, while it was Rs. 16.91 / kWh for the outgoing year 2021 – 22. It was a rate hike of a staggering 47 percent by NEPRA; and, it will jolt the cost of doing business and ease of doing business indices.

Additionally, rumors are rife that there will be even further raise in the electricity tariffs; and, the combined effects of petroleum, electricity and gas prices will make businesses unsustainable and unviable, he added.

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Shabbir Hassan Mansha has extended FPCCI’s full support from the platform of the apex body to kick start a consultative process between the government and all the stake holders to work out some sort of operational contingencies under the prevailing cost of doing business crisis.

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