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Karachi, August 20, 2023 (PPI-OT): Mr. Muhammad Suleman Chawla, Acting President FPCCI, has strongly rejected the massive hike in the prices of petroleum products effective from August 16, i.e. petrol by 6.4 percent or PKR. 17.50 per liter to make it 290.45 and high speed diesel by 7.3 percent or PKR. 20.00 per liter to take it to 293.40 per litre. It will ruthlessly fuel the existing inflationary pressures even further; resulting in multiplier effect of upsurge in cost of living and cost of doing business – which is already the highest in the entire region, Mr. Chawla added.
Acting FPCCI Chief, Mr. Suleman Chawla, explained that the apex body forewarned the authorities a number of times over the last few months that they need to address the teething problems in the import of the Russian crude, i.e. handling of oil cargoes; adjustments required vis-à-vis refining processes and commercial transactional procedures to settle oil payments. Nevertheless, the authorities failed to listen to us; else, we would have more Russian crude by now, which is cheaper by a whopping 35 – 40 percent as compared to international markets today, he added.
Mr. Suleman Chawla particularly highlighted that the international oil markets are in a flux and instability; and, all national and international notable economists agree that the demand for the petroleum products internationally will remain low for a couple of years to come due to slowing down of the global economy. That should have convinced the economic managers of the country to hold such an enormous, counterintuitive and counterproductive raise in petroleum prices – while, the domestic demand by refineries will not even cross 150,000 barrels / day for the imported crude due to unprecedented slowing down of the national economy, Mr. Chawla remarked.
Engr. M. A. Jabbar, VP FPCCI, reminded that just two week ago, the authorities have announced PKR. 7.50 per kWh raise in electricity prices; and, just about the same raise as today, in petroleum products, i.e. 6 – 7 percent, despite FPCCI’s repeated demands that electricity and petroleum prices should be stabilized by curtailing the distribution and line losses and reducing systemic inefficacies. Engr. Jabbar also questioned that how the export orders-in-hand can be met in a profitable manner after the triple blow of electricity tariff increase and petroleum price hikes twice within a short-span of 2 weeks – resulting in uncertainty and price instability.
Mian Anjum Nisar, former President FPCCI, has expressed his profound concerns that domestic and international demand for Pakistani products will be at an all-time low as inflation has severely affected the purchasing power of the domestic consumers and, for international and regional markets, Pakistani products have become uncompetitive by a large margin.
Mian Nasser Hyatta Maggo, immediate past President FPCCI, recalled that the government has missed all macroeconomic indicators and their targets for FY23 and, for FY24 as well, these continuing bad economic decisions will have a lasting effect on all economic performance indicators – be it exports, industrial production, inflation, employment generation and revenues.
For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/
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