PIAF demands withdrawal of hike in oil prices to facilitate industry

DNA

LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) on Sunday demanded of the authorities to withdraw the decisions of continuous raises in oil products prices, as the move would hurt the economic growth in the country.

PIAF Chairman Faheemur Rehman Saigol, in a joint statement along with senior vice chairman Nasrullah Mughal and vice chairman Tahir Manzoor Chaudhary said the federal government has increased the rate of petrol by Re1 to Rs257.13 per litre for the next 15 days.

According to a notification issued by Ministry of Finance, the price of high-speed diesel (HSD) has been increased by Rs7 to Rs267.95 per litre.

Faheem Saigol said that petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Nasrullah Mughal said that its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

Tahir Manzoor Chaudhary said that the consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.

The said the government increased liquefied petroleum gas (LPG) prices by Rs3.68 per kilogramme for both domestic and commercial consumers for the month of February, 2025.

According to a notification issued by the Oil and Gas Regulatory Authority (Ogra) on Friday, the price of an 11.8 kg domestic LPG cylinder has been increased to Rs2,997, up from Rs2,953. Similarly, the cost of a commercial LPG cylinder (45.4 kg) has been increased by Rs167, now priced at Rs11,530 compared to the previous rate of Rs11,363.

The PIAF chief demanded of the Prime Minister to reduce the petroleum prices immediately and also ensure representation of business community in the bodies like OGRA and NEPRA so that business friendly decision could be made. He said had the government been sincere enough with this country it would have started work on some water reservoirs to cater to the future needs of the people but present regime shelved the project of Kalabagh dam with a one stroke of pen.

He said that petrol and HSD are the major revenue spinners with their monthly sales of about 800,000 tons per month compared to just 11,000 tons of monthly demand for kerosene. He said the industrial and general consumers will be feeling the pinch of high transportation costs as petrol and diesel prices have swelled very high.

He said that another hike in petrol prices would put an additional burden on the industries and general public at a time when they are already hard-pressed with huge power tariff jump.

PIAF leader said that recent increase in the petrol, diesel and other petroleum prices has shattered all segments of society including industrialists and traders.

He said that government did not bother to pass on the benefit of decrease of oil prices in international market and earned billion rupees, which was a sheer injustice and now made a huge raise in the petroleum prices. He said that there is almost no production in the industrial sector due to massive load shedding while increase in petroleum and diesel prices would give a big blow, not only to the industry but also to the agriculture sector that is backbone of the economy.

He said that the industrialists, traders and common men are already annoyed due to load shedding while further increase in petroleum prices would add fuel to the fire. He said that government should cut down its luxurious expenditures and curtail taxes and duties on the petroleum prices.

He said that the PIAF 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.