Key Takeaways
- KATI President Muhammad Ikram Rajput demands review of daily fuel price fixing.
- He argues this decision increases uncertainty and affects business costs.
- Rajput calls for a transparent and predictable system to protect the economy.
KATI President Muhammad Ikram Rajput has called for a review of the government's decision to fix petroleum prices daily, stating that it causes severe hardship to industry, trade, transport, and the public.
Rajput, speaking to Business Recorder, emphasized the need for a transparent and predictable system that would protect business costs, the public, and the national economy from unnecessary fluctuations.
He highlighted that in the last three days, the price of petrol has increased by about Rs22, while diesel has increased by more than Rs14, which is an additional burden on the inflation-stricken people.
Rajput expressed that daily changing prices will cause severe hardship to industry, trade, transport, and the public, increasing uncertainty instead of economic stability.
According to official data, about 37 percent of the price of petrol and 31 percent of the price of diesel consists of various taxes, duties, and levies. Rajput suggested that the government should review the system of taxes and levies instead of passing the burden of global price fluctuations directly on the public and industry.
He stated that every day the new price of fuel means new transport costs, new fares, and new prices, affecting the entire supply chain and the prices of every sector, including essential commodities.
Rajput also noted that the daily change in prices will affect the competitiveness of the export industry, making it difficult to accurately estimate the cost of production, and investor confidence is likely to weaken.
Small and medium-sized businesses will be the most affected by this situation, Rajput warned, adding that the benefit of the reduction in the prices of petroleum products in the global market should be immediately passed on to the public, industry, and transporters.
He concluded that it is unacceptable to pass on price increases immediately and decreases with delay.
Pakistan’s economy needs policy continuity, economic stability and business confidence instead of daily changing prices.
Muhammad Ikram Rajput, President of Korangi Association of Trade and Industry (KATI)
