FPCCI appeals for oil price hike reversal as decision to eliminate benefit of mark-up rate cut.

Islamabad -- The Federation of Pakistan Chambers of Commerce and Industry has urged the government to withdraw the decision of hike in prices of petroleum products, as the move will wipe up relief of mark-up rate cut announced for the industry recently.

In a statement issued here on Sunday, the chief of apex body of all Chambers and Trade Associations called for taking strict action against companies for not providing the petroleum products at lower prices, instead of surrendering before such elements in the larger interest of the country.

'It is good that the government took the ongoing issue of oil supply chain disruption as serious and tried its best to address the matter, which led to serious shortage in many parts of the country, but abrupt hike in prices of petroleum is not the right solution,' he argued.

Mian Anjum Nisar said that the step has taken the trade and industry by surprise because it was out of schedule and was not prompted by any summary moved by the Oil and Gas Regulatory Authority, which is the legal procedure.

He argued that 6.25 per cent drop in interest rate in recent days have started to cut cost of production and bolster the debt repayment ability but the sudden decision of unprecedented jump in oil products' prices will fade away the all relief announced by the central bank earlier for the business community.

FPCCI President said that a sudden and unexpected increase in fuel prices is against all norms set by the government itself. By not waiting for the month to end or taking the OGRA's opinion on the issue, the government has decided to break from tradition and took back the measures the government itself had put in place to provide relief to the public. It is very strange that these procedures are being flouted especially when the government itself identified the need to decrease these prices, he added.

He said the business community was already facing severe problems due to destruction of COVID-19 and in such a situation making hike of up to 66 per cent in the prices of petroleum products in one go is unjustified. He said that the price of crude oil in the world market is still around $42 per barrel and as per calculations the ex-refinery price of patrol is worked out at around Rs45 per litre but the government increased the rate of...