Petroleum price hike to stoke inflation: industry

Wednesday, December 02, 2009

LAHORE: The trade and industry while criticising the government on Tuesday urged it to immediately withdraw the increase in prices of petroleum products as it would cause irreparable damage to the government.

In a statement, Lahore Chamber of Commerce and Industry President Zafar Iqbal Chaudhry, Senior Vice President Ejaz A Mumtaz and Vice President Faisal Iqbal Sheikh said over seven per cent hike in prices of petroleum products announced on Monday would hit hard both the industrial and agriculture sectors besides stoking up inflation.

They said the entire industrial sector was already facing multiple internal and external challenges and the petroleum price increase would further aggravate the economic situation. They said the government was producing a huge amount of electricity through thermal means and after increase in petroleum prices, power rates would touch new highs.

They also questioned the government’s move at a time when the whole industry was suffering due to energy crisis and high cost of doing business. “The rise in petroleum prices is bound to give a further blow to the industry. It seems that it is an attempt to create trouble for the government,” they said.

In a separate statement, the Pakistan Industrial and Traders Associations Front (PIAF) termed the increase in petroleum prices anti-trade, anti-industry and anti-people.

PIAF Chairman Irfan Qaiser Sheikh said there were other avenues through which the government could generate money instead of increasing prices of petroleum products against the will of the masses.

He urged the government to review its decision in the larger interest of the country in general and for the sake of economy in particular.

Cut in non-development expenditures could help the government, but it seemed that some elements in the government wanted to defame it through unpopular decisions, he pointed out.

An extra burden on the people, trade and industry would prove a big blow. Inflation had come down to 8.9 per cent but after the rise in petroleum prices, it would again go into double digits, he feared.