Karachi, August 16, 2023 (PPI-OT): President Karachi Chamber of Commerce and Industry (KCCI) Mohammed Tariq Yousuf, while expressing sheer dismay over exorbitant upsurge in petrol and diesel prices by Rs17.50 and Rs20.00 respectively, stated that this extraordinary increase in fuel prices was totally unbearable for all segments of society including the business and industrial community as it would open up a floodgate of inflation and intensify the hardships for industries whose businesses were already going down because of extremely high cost of doing business.

In a statement issued, President KCCI said that the industries were already battling to somehow keep their production activities alive as recently, KE’s base power tariff was raised by Rs7.5 per unit which was followed by another increase of Rs2.31 per unit on account of Fuel Cost Adjustment by Rs2.31 (FCA) and now, the unbearable hike in prices of petroleum products would terribly affect the overall production activities and leave a very deep scar on the already ailing economy. He noted that on 1st January 2023, petrol price stood at Rs214.80 and within eight months, it has skyrocketed to all-time high of Rs290.45 whereas within the last two fortnights, petrol price has been raised continuously, resulting in an upsurge of Rs40 per liter within a month which would have serious repercussions as it is a well-known fact that any upsurge in petroleum price directly affects almost all the household commodities and the cost of finished goods.

He was of the opinion that the trade and industries were already overburdened due to exorbitant production cost purely triggered by hike in power tariff and petroleum prices which was the basic reason why 50 percent of the industries, who were carrying out production activities by utilizing KE’s electricity have already closed down whereas the remaining were battling for survival. “We fear that the rest of 50 percent industries would also shut down due to exorbitant energy tariffs.” The government must take cognizance of the gravity of situation and take serious steps to bring down the cost of industrial inputs including electricity, gas, petroleum products otherwise, neither the economy nor the businesses would be able to stay afloat, he added.

Keeping in view the hardships being faced not only by the industries but also by the poor masses in the ongoing era of inflation, Tariq Yousuf asked the government to take solid steps for bringing down the petroleum and electricity prices which have reached to a backbreaking level. “People across-the-board are extremely perturbed and becoming hopeless with every passing day. Even the white-collar people are unable to overcome their daily domestic expenditures”, he noted, adding that the alarming situation calls for prompt action so that the wheels of industries could keep on spinning and the poor masses could also be saved from hunger and starvation

For more information, contact:

Director Press/Electronic Media and Public Relations

Karachi Chamber of Commerce and Industry (KCCI)

Aiwan-e-Tijarat Road, Off Shahrah-e-Liaquat,

Karachi-74000

Phone: +92-21-99218001-09

Fax: +92-21-99218040

Email: [email protected], [email protected]

Website: www.kcci.com.pk