Karachi, September 16, 2023 – The Karachi Chamber of Commerce and Industry (KCCI) has voiced its concerns over the recent surge in petroleum prices, which came into effect on September 16, 2023.
In a statement issued on Saturday, KCCI President Mohammad Tariq Yousuf expressed deep apprehension about the implications of this price hike on various sectors of the economy.
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According to the statement, President Tariq Yousuf highlighted the staggering increase in prices of petroleum products, which he believes will exacerbate the already soaring inflation, intensify the hardships faced by the common man, and create serious challenges for industries due to the significantly increased cost of doing business.
He drew attention to the gravity of the situation, pointing out that the price of petrol has risen by Rs26 per liter and diesel by Rs17.34. This has driven petrol prices to an alarming Rs331.38 per liter and diesel to Rs329.18 per liter, a level deemed unacceptable by the KCCI as it places an immense burden on industries struggling to operate at such high costs. Yousuf noted that this marks the fourth consecutive hike in petroleum prices, with an increase of over Rs58 per liter during the tenure of the Caretaker government alone. Such steep increases are expected to pose substantial challenges to the already fragile economy, as numerous industrial units have curtailed their production due to high costs.
President KCCI emphasized that the general public was already grappling with increased electricity tariffs, and the dramatic rise in petroleum prices only adds to their financial burden. This situation is causing great concern not only among the masses but also within the business and industrial communities.
Yousuf acknowledged that the government is compelled to take stringent measures to generate the necessary revenue to meet expenditures and fulfill international commitments. However, he urged the government to adopt a more measured approach, devising an effective strategy to provide relief to both the masses and the industry, which are struggling to cope with consecutive price hikes.
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He stressed that the current situation must be handled with care, as rising petroleum prices and electricity tariffs are increasing the cost of doing business, potentially leading to higher unemployment rates and surging inflation, particularly affecting the middle and lower segments of society. The result could be a further widening of the wealth gap and increased financial hardship for the less privileged due to unmanageable inflation.
Yousuf also highlighted the adverse effects of increased petroleum prices on transportation charges for import and export cargo, electricity fuel adjustment charges, maintenance costs, and other expenditures. Collectively, these factors are expected to drive up the cost of finished goods, rendering the manufacturing and export sectors less competitive in the international market.
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In conclusion, President Tariq Yousuf expressed hope that the government would carefully review the overall inflationary situation and take steps to alleviate the burden on both the common man and the industry. Such measures would be welcomed by people from all walks of life and contribute to the well-being of the country’s ailing economy.
