Business leaders have strongly protested against the increase in the prices of petroleum products made effective from February ruary 1, by the Oil & Gas Regulatory Authority (Ogra). Sultan Ahmed Chawla, President of Federation of Pakistan Chambers of Commerce and Industry, said that the increase by five to nine percent, including increase in kerosene oil, would hit the poor sections of society, mostly living below poverty line.
Industrial and agricultural sectors of economy, both being the main drivers of economic growth would also be hit hard, he added. He said: "The increase, it seems, is aimed at meeting the revenue target dictated by IMF. This could have been met through other available means, including cut in government expenses."
The increase in prices of petroleum products would further undermine industrial growth already reeling under power shortages. A number of industrial units have already closed or are operating at below optimum levels. The Ogra must revise its decision and withdraw the increase with immediate effect, he demanded.
Industrialists of Federal 'B' Industrial Area have also strongly protested against the substantial hike in petroleum products prices, terming them "quite unjustified" at a time when other countries in the region are extending price relief to their people. The Chairman of Federal 'B' Area Association of Trade & Industry, Shahid Ismail, said that a large number of small and medium size units had closed down in the last six months as they could not compete owing to surging cost of production.
He expressed fear that the recent increase in prices would force more units to close down. "This would not only increase SPL and poverty but the output of trade & industry would also be extremely negative and would have direct impact causing hurdles in the pace of industrial development. The Association would adopt a joint strategy towards the anti-industrial decisions," he said.