Fuel prices increase rejected

LAHORE - Trade leaders, growers, associations of industrialists and transporters have straightforwardly rejected the sharp increase in the fuel prices and urged the government to immediately withdraw the increase in the prices of petroleum products, as it would cause irreparable damage to the government.
In statement issued here Tuesday, President Lahore Chamber of Commerce and Industry Zafar Iqbal Chaudhry, Senior Vice President Ejaz A Mumtaz and Vice President Faisal Iqbal Sheikh said that the recent increase of 7pc in the prices of petroleum products would hit both the industrial and agriculture sectors hard besides jacking up the rate of inflation in the country.
The LCCI office-bearers said that the entire industrial sector was already facing multiple internal and external challenges and the recent increase would further aggravate the economic situation.
Pakistan agriculture sector is engine of growth. The increase in petroleum prices would increase the input cost of agriculture production as high-speed diesel is being used in tractors, tub-wells, harvesters, thrashers and other agriculture machinery. They said that the cost of thermal generation by private sector to go up. The LCCI office-bearers said that not only the transportation cost of goods would multiply but fares of public transport would also increase manifold.
They said that Govt is producing huge amount of electricity through thermal means and after increase in petroleum prices, prices of electricity would touch new highs. The LCCI office-bearers said due to this sharp rise, the inflation would gain enter into double digits from existing 8.9pc.
The LCCI office-bearers said that the Lahore Chamber of Commerce and Industry had for the last many months been calling on the concerned government circles to take measures for the promotion of alternate fuels as trade deficit was fast widening due to heavy imports under the head of petroleum products.
Pakistan Industrial and Traders Associations Front (PIAF) Thursday took a strong exception to increase in petroleum prices and termed it as an anti-trade, anti-industry and anti-people decision.
In a joint statement, the PIAF Chairman Irfan Qaiser Sheikh said that there were other avenues through which the government could generate money instead of increasing prices of petroleum against the will of the masses.
He urged the government to review its decision in the larger interests of the country in general and for the sake of economy in particular.
The PIAF Chairman said that cut in non-development expenditures could help the government but it seems that some elements in the government want to defame it through unpopular decisions.
He said that an extra burden on the people, trade and industry of the country would prove a big blow. He said that inflation came down to 8.9 per cent but after increase in petroleum prices, it would again go up to double digit. Irfan Qaiser Sheikh said that both the trade and industry of the country were already facing multiple challenges and were fighting for their survival in the wake of acute shortage of electricity and the recent increase would add to their miseries.
He urged upon the Prime Minister to take notice of the situation and withdraw 7% increase in petroleum prices.
Regional Chairman FPCCI Main Muhammad Idrees and VP Hameed Akhtar Chadda termed the increase in fuel prices as a bombshell on the public and industry and said that it would badly affect the industrial sector.
They said that it would also put extra-burden on the inflation-hit public and the industry, which is already facing server problems due to various reasons. They also said that such step would not only suspend economic growth in the country but also multiply the miseries of the pubic, growers and trade and industry.
Chairman Pakistan Flourmills Association (Punjab) Liaqat Ali Khan said that the increase is fuel prices would force the millers to increase the prices of flour, as it would multiply the cost of doing business. He said that they had informed the government regarding the increase in flour prices. He said that the millers would increase the price of flour by Rs 6 per bag and the prices would be increased within two days.
President Muthidda Kisan Mahaz Ayub Khan Mayo termed the increase in the fuel prices as economic-murder of the farmers who are facing hard times at present. He said that the sharp increase in the prices of petroleum products would increase the agriculture input cost and put extra-burden on the poor farmers.
Meanwhile, the transporters have threatened to increase the transport fares if the government would not withdraw the fuel prices immediately.