Key Takeaways
- The Pakistan Goods Transport Alliance has increased freight rates by 15% following a rise in fuel prices.
- Transporters demand the withdrawal of toll and withholding taxes, as well as abolition of traffic fines.
- Petroleum product prices have seen significant hikes, with petrol now costing Rs. 316.15 per liter.
Pakistan’s goods transporters have responded to rising operational costs by increasing freight rates by 15%, according to the Pakistan Goods Transport Alliance (PGTA). The decision comes in the wake of a substantial hike in fuel prices, which has significantly impacted the sector.
Speaking at a press conference in Karachi, Malik Shahzad Awan, President of PGTA, expressed dissatisfaction with government policies that have failed to provide relief to transporters. He highlighted the urgent need for government intervention, particularly in the form of tax exemptions and the abolition of traffic fines.
Awan criticized recent increases in petroleum product prices, noting that these hikes have forced many transporters to park their vehicles due to unaffordability. The government has increased petrol by Rs. 5.44 per liter and high-speed diesel by Rs. 31.05 per liter, effective from July 18 to July 20. As a result, the new prices are now at Rs. 316.15 per liter for petrol and Rs. 354.35 per liter for diesel.
In addition to fuel price increases, kerosene has also seen a significant hike of Rs. 34.33 per liter, bringing its new price to Rs. 276.66 per liter from the previous Rs. 242.33 per liter. These changes have further strained the operations of transporters who are already grappling with higher costs.
The PGTA has called for immediate relief measures, including the withdrawal of toll and withholding taxes, which Awan believes are disproportionately affecting the transport sector. He emphasized that these taxes, combined with traffic fines, are making it increasingly difficult for transporters to operate profitably in the current economic climate.
Awan’s comments reflect a broader concern among transporters about their ability to sustain operations amidst rising costs and regulatory pressures. The 15% increase in freight rates is expected to be passed on to consumers, potentially leading to higher prices for goods across various sectors of the economy.
The government has acknowledged the challenges faced by the transport sector but has not yet provided a formal response to PGTA’s demands. Transporters are urging policymakers to address their concerns promptly to ensure continued smooth functioning of the supply chain.
We have failed to provide any relief to goods transporters despite rising operating costs.
Malik Shahzad Awan, President, Pakistan Goods Transport Alliance
