ICCI resents increase in POL products’ prices

Islamabad: The Islamabad Chamber of Commerce & Industry (ICCI) has strongly protested against the second consecutive increase in the prices of petroleum products by the caretaker government in its short tenure and termed it an unfortunate decision as it would unleash a new wave of inflation for the common man and badly affect the growth of business activities. It called for urgent withdrawal of the recent hike in POL prices in order to save the general public and the economy from further troubles.

ICCI President Sheikh Amir Waheed said that the caretaker government on 11th June 2018 had hiked the price of petrol by Rs4.26 per litre, diesel by Rs6.55 and kerosene by Rs4.46 per litre while from 1st July 2018, it has again increased the price of petrol by Rs7.54 per litre, diesel by Rs14 and kerosene oil by Rs3.36 per litre. Thus the caretaker government has so far made a cumulative increase of Rs11.80 per litre in petrol price, Rs20.55 in diesel and Rs7.82 per litre in kerosene oil price which is unjustified as it would add to the miseries of the common man and put negative impact on trade and industry.

He said that in Pakistan major chunk of electricity was produced through furnace oil which has significantly increased the cost of production making our exports uncompetitive in the international market. He said that our exports have been struggling for the last many years while the twice increase in the price of petroleum products in a short span of time would make our exportable products more uncompetitive in international market leading to further slump in exports and economic growth. Therefore, he called upon the government to revise its decision and withdraw the recent hike in POL prices to save the country from further difficulties. He said the caretaker government should focus on successful holding of elections and leave the major policy decisions to the next elected government.

Muhammad Naveed Malik, Senior Vice President and Nisar Mirza, Vice President ICCI said that the increase in diesel price would further enhance transportation cost and create problems for agriculture sector as most of the tube wells were running on diesel. They said that the government has imposed many taxes on POL products as it was receiving 27.5 per cent GST on HSD and 17 per cent GST on other POL products. Moreover, it was charging Rs8 per litre on HSD as petroleum levy and Rs10 per litre on petrol. They urged that instead of hiking POL prices, government should reduce heavy taxes and levies on these products to facilitate the growth of economic activities.