President ICCI terms POL price hike highly Unjustified

  • August 23, 2012
Islamabad Chamber of Commerce and Industry (ICCI) rejected the increase in POL prices up to Rs.4.85 per litre and CNG Rs.3.21 per kg and also strongly criticized the decision of revising the prices of petroleum products on weekly basis.

Yassar Sakhi Butt, President ICCI expressed his apprehension over massive hike in POL prices and said that Government has again failed to honour its promise as Adviser to the Prime Minister on Petroleum and Natural Resources had announced to keep POL prices unchanged for the next 15 days.
He said that the implantation of the decision of revising the prices of petroleum products on weekly basis would create multiple problems for the trade and industry as business community would not be able to calculate return on investment when the cost of doing business would be fluctuating on weekly basis.
ICCI President said that a comparison between the international oil prices and local prices is enough to make the point that the local prices have registered massive increase in the last two years in comparison with the global rates. Therefore, the Government has no justification to make any increase in POL prices, he added.
Yassar Sakhi Butt said that the entire industrial sector was already facing multiple internal and external challenges and this current increase in POL prices would further aggravate the economic situation.
He said that Pakistan is an agrarian country, therefore hike in petroleum prices would increase the input cost of agriculture production as high speed diesel is being used in tractors, tube-wells, harvesters, thrashers and other agriculture machinery.
ICCI President said that the transportation cost of goods would multiply as well as fares of public transport would also increase manifold due to increase in POL and CNG prices. He stressed upon the Government to reduce POL and CNG rates immediately to facilitate trade and industry as well as general masses.