KATI demands cut in fuel prices

KARACHI: Korangi Association of Trade and Industry (KATI) on Thursday urged the government to reduce petrol prices, saying inflation could not be controlled without cutting petroleum products’ and utility prices.

The trade association also showed concerns over the governments’ hint to a further increase in petroleum levy under conditions of International Monetary Fund (IMF).

“Finance Minister Miftah Ismail indicated to increase the petrol levy by 10 rupees from September 1, up to 50 rupees per litre, which will be very harmful to the economy”, KATI president Salman Aslam said.

He added that petrol prices in the global markets had reached the lowest level in 5 years, along with cost of the dollar that decreased by more than 30 rupees in past few days.

“In this case, increase in the prices of petroleum products by justifying the IMF agreement is not acceptable.”

Aslam opposed the finance minister’s decision, saying the initiative would increase inflation instead of being controlled.

“The finance minister has expressed his commitment to reducing inflation, but it is not possible unless petroleum products and utility prices are reduced,”

He said such decisions creates chaotic situation for investors and stakeholders that directly affects the country’s stock market and investments. “It’s impossible to control inflation or inflation due to the cost of production.”