KARACHI, August 16, 2023 – The Karachi Chamber of Commerce & Industry (KCCI) has called on the government to swiftly retract the recent increases in petroleum prices and power tariffs.
KCCI President Mohammed Tariq Yousuf issued a statement expressing deep concern over the significant surge in petrol and diesel prices by Rs17.50 and Rs20.00 respectively.
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Yousuf emphasized that the sharp escalation in fuel prices was an immense burden for all sections of society, including the business and industrial community. He warned that this steep rise in costs would pave the way for inflation and exacerbate the challenges faced by industries already grappling with the burdensome cost of operations.
Highlighting the precarious situation, Yousuf pointed out that the industrial sector was already struggling to maintain production activities, particularly given the recent escalation of the Karachi Electric’s (KE) base power tariff by Rs7.5 per unit, coupled with an additional increase of Rs2.31 per unit due to Fuel Cost Adjustment.
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The staggering increase in petroleum product prices only compounds these challenges, significantly impacting production activities and further weakening an already fragile economy.
Yousuf underscored the alarming rate at which petrol prices had risen, indicating that within a mere eight months, prices had surged from Rs214.80 to a record high of Rs290.45. The recent consecutive increases within a short span of time – an upsurge of Rs40 per liter in a month – would inevitably reverberate through household goods and finished products, affecting consumers at all levels.
The KCCI president expressed the concern that the exorbitant production costs resulting from elevated power tariffs and petroleum prices had severely strained trade and industries. This strain has already pushed 50 percent of industries relying on KE’s electricity to shutter their operations, while the remaining half struggle to survive. Yousuf cautioned that more industries could follow suit if energy tariffs continued their upward trajectory.
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Yousuf urged the government to address the gravity of the situation promptly, emphasizing that the cost of industrial inputs, such as electricity, gas, and petroleum products, must be curtailed. Failure to take substantial measures would jeopardize both the economy and businesses, he cautioned.
In light of the mounting hardships experienced by industries and the general population due to inflation, Yousuf appealed to the government to take resolute steps to lower petroleum and electricity prices, which have reached debilitating levels.
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He stressed that the situation had left people across all strata of society deeply distressed and despairing, with even salaried individuals struggling to meet their basic domestic expenditures. Urgent action is needed to sustain industrial activity and prevent the further deterioration of living conditions for the vulnerable segments of society.
