Lahore, May 01, 2018 (PPI-OT): The Pakistan Industrial and Traders Associations Front (PIAF) Chairman Irfan Iqbal Sheikh has condemned the government for increasing prices of petroleum products up to Rs. 4 per litre, terming it bad news for the country’s economy, as this hike in fuel rates would lead to increasing cost of production cost of doing business as well.
He said though the prices of oil in global market are going up yet the authorities can keep the rates stable by reducing tax ratio which is highest in the region. Fuel prices has been continuously increasing in Pakistan for last few months which is bad for a developing economy like Pakistan which needs to be fix and consistency to achieve the desired results.
The govt has increased the price of petrol by Rs 1.70 per litre. High speed diesel price was enhanced by Rs 2.5 per litre, light diesel oil by Rs3 per litre and kerosene oil price increased by Rs 3.41 per litre for May. Petrol price will go up to Rs 87.70 per litre. HSD price has gone to Rs 98.59 per litre. In the past, the government did not pass on the full benefit of declining oil prices to the public by imposing heavy taxes.
It is the time to relax the duties and absorb the burden of soaring petroleum prices in international market by keeping the prices stable. Irfan Iqbal, terming it a bad news for the country’s economy which was already facing a number of challenges, said that the increase would put extra burden on the consumers.
During a meeting with a delegation of industrialists at his Gulberg office, Chairman PIAF Irfan Iqbal Sheikh along with senior vice chairman Tanveer Ahmed Sufi and vice chairman Kh. Shahzeb Akram, argued that the high cost of doing business is hindering Pakistan in achieving its export target. He also demanded for a uniform gas tariff, since Punjab faces a higher rate than Sindh.
PIAF Chairman expressed the hope that the government should keep an active vigilance on early completion of all energy projects in time and there should be 100% uninterrupted supply of gas and power to industries as early as possible. He lamented that the previous government did not facilitate the maintenance of old power plants which caused several system constraints inflicting heavy losses.
He said that PIAF had always been calling on the concerned government circles to take measures for the promotion of alternate fuels as trade deficit was fast widening due to heavy imports under the head of petroleum products. He said that rise in POL prices is bound to give a further blow to the industry. Irfan Sheikh said that PIAF had for the last many months been calling on the concerned government circles to take measures for the promotion of alternate fuels as trade deficit was fast widening due to heavy imports under the head of petroleum products.
He said that the timeline for the increase in the prices of petroleum products was also raising questions. He said that at a time when the whole industry was suffering high cost of doing business, the raise in POL prices is bound to give a further blow to the industry. Chairman PIAF Irfan Iqbal Sheikh urged the authorities to decrease the oil price by decreasing the tax ratio and petroleum levy on 0il prices hence cost of production would be reduced.
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Pakistan Industrial and Traders Associations Front (PIAF)
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