Twelve per cent hike in petroleum products' prices will multiply problems of industrial sector, as it will not only increase cost of production, but also raise inflation, said Mahfooz Elahi, President Islamabad Chamber of Commerce and Industry (ICCI) here on Monday.
"Government has increased fuel prices by 12 per cent and multiplied the problems of business community and common man", Mehfooz said while talking to business leaders. The unprecedented increase in petrol prices within a short time would have negative effect on production, which is already facing high cost, he said, adding that the government should consider reducing the petroleum levy rather burdening the business community and the common man with the unprecedented increase in oil price.
The increase in petroleum prices would add to the rising trend of inflation and the cost of industrial production that is already under heavy pressure because of higher electricity and gas charges, he stated. ICCI President said that petroleum prices were being increased every month and adds to the woes of the citizen. He said that the government should extend support to ailing business and industry rather than raising petroleum prices.
He said that it was second major petroleum prices' surge in few days, which multiplied the hardship of poor Pakistanis, already burdened with high inflation rates and bleak economic conditions. Mahfooz Elahi called for withdrawal of increase in petroleum prices to augment the industry and trade activities. Industry could grow and become cost competitive in the regional and international markets, if government cut in POL prices, he maintained. ICCI President said that ICCI had for the last many months been calling the concerned government circles to take measures for the promotion of alternate fuels.