KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Mohammed Tariq Yousuf, while expressing sheer dismay over exorbitant upsurge in petrol and diesel prices by Rs17.50 and Rs20 per litre, respectively, stated that this extraordinary increase in fuel prices was totally unbearable for all segments of society including the business & industrial community, as it would open up a floodgate of inflation and intensify the hardships for industries whose businesses had already been going down because of extremely high cost of doing business.
He said that the industries were already battling to 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 (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 litre 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 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 soon due to exorbitant energy tariffs.”
