Karachi, February 1, 2024 – The Korangi Association of Trade and Industry (KATI) has raised its voice against the recent surge in petrol prices, labeling it as unjust, particularly when the exchange rate remains stable.
KATI President Johar Ali Qandhari, in a statement on Thursday, expressed strong opposition to the increase of 13 rupees 55 paisa per liter in petrol prices, asserting that the decision comes despite a stable dollar.
Qandhari argued that the local price surge significantly exceeds the fluctuations observed in global markets. He predicted that this move could lead to a surge in inflation, placing an additional burden on the already-strained common people.
Expressing concern over the potential impact on the public, President KATI suggested that the government could have deferred the hike in petroleum prices, taking into consideration the ongoing challenges faced by the people. Alternatively, if a price increase was deemed unavoidable, Qandhari proposed that the government should have considered reducing tax and levy rates to alleviate the financial strain on the public.
The KATI president emphasized the hardships confronted by industries, urging the government to reconsider the decision to increase petroleum prices. He argued that rescinding the price hike would not only benefit the industry by reducing production and transportation costs but also contribute to stabilizing the country’s economy.
Qandhari highlighted that industries across various sectors are already grappling with challenges, and an additional financial burden in the form of increased fuel prices could exacerbate their woes. The call for reconsideration comes at a time when businesses are striving to recover from the economic downturn caused by the global pandemic.
The statement underscored that a stable exchange rate, which typically serves as a mitigating factor against sudden price hikes, has not been reflected in the recent adjustment in petrol prices. KATI emphasized the need for a more transparent and justifiable approach to pricing policies, especially when the local currency is holding its ground in the international market.
KATI, as a representative body of trade and industry, has urged the government to engage in a dialogue with stakeholders to find a balanced solution that considers both economic stability and the welfare of the general public. The association emphasized the importance of collaborative decision-making to address the concerns of various sectors and ensure sustainable economic growth.
As the debate surrounding the petrol price hike continues, KATI remains committed to advocating for the interests of the business community and the broader public, calling for measures that promote economic recovery without unduly burdening the citizens.
