Karachi Chamber of Commerce & Industry Expresses Concern Over Soaring Petroleum Prices

Karachi Chamber of Commerce & Industry Expresses Concern Over Soaring Petroleum Prices

The President of the Karachi Chamber of Commerce & Industry (KCCI), Mohammad Tariq Yousuf, has voiced deep apprehension regarding the significant surge in petroleum product prices. This increase is expected to exacerbate the already escalating inflation, intensify hardships for the common man, and pose significant challenges to the business and industrial sectors due to the exorbitant cost of operations.

In a statement released, President KCCI highlighted the alarming fact that petrol prices have risen by Rs 26 per liter, while diesel has increased by Rs 17.34. Consequently, petrol prices have soared to a staggering Rs 331.38 per liter, and diesel now stands at Rs 329.18 per liter. This steep hike is deemed unacceptable, as it renders industrial operations nearly unfeasible under such high costs. It's worth noting that this marks the fourth consecutive increase in petroleum prices, and during the tenure of the Caretaker government alone, petrol prices have risen by over Rs 58 per liter, which could lead to substantial challenges for the already struggling economy, hampering production in numerous industrial units due to these elevated costs.

President KCCI emphasized that the general public is already burdened by recent increases in electricity tariffs, and the extraordinary surge in petroleum prices has compounded the distress, affecting not only the masses but also the business and industrial communities.
He suggested that considering the economic crisis facing the country, the government may find it necessary to take stringent measures to generate the required revenue and fulfill international commitments. However, instead of implementing consecutive price hikes, they should develop an effective strategy to provide some relief to the masses and industries that will struggle to cope with the repercussions of these constant price increases.

Tariq Yousuf stressed the importance of efficiently addressing the emerging situation with care. Failing to do so could lead to rising petroleum prices and electricity tariffs, which will increase the cost of doing business, impacting industrial performance, leading to unemployment, and exacerbating inflation, particularly for the middle and lower segments of society, ultimately making the situation more challenging for the economically disadvantaged.

He pointed out that the increase in petroleum prices would also have adverse effects on transportation charges for import-export cargo, electricity fuel adjustment charges, maintenance costs, and other expenses. These factors would collectively impact the cost of finished goods and make the manufacturing and export sectors less competitive in the international market.

He expressed hope that the government would assess the overall inflationary situation and take measures to alleviate the burden on the common man and the industry. Such actions would be warmly welcomed by people from all walks of life and would be in the best interest of the country's struggling economy.