Increase in oil prices: Traders anticipate 5-10pc boost in manufacturing cost

N H Zuberi

KARACHI: Business community have expressed feared that recent decision of the government of increasing oil prices will have 5 to 10 per cent impact on cost of manufacturing

The increase in oil prices will bring a wave of prices increase in all locally produced goods besides increase in prices of agriculture produced. They were of the view that the government is not taking the matter seriously even when the people have started agitation on road with their spouse and children due to high cost of living.

The government is wasting time in elaborating factors fixing responsibility for the mess on pervious governments rather than making efforts to resolving the problems. They said general public in Pakistan is already in hot waters due to multiple factors including security issues, energy crisis, and high cost of living while further drastic increase in oil price will add fire to the fuel.

“There was no consultation with the business community. The decision could have been routed through negotiation with business and industrial leaders also they flayed the steep hike in petrol prices terming it as “unreasonable” and a “cruel blow” to the common man.

Former Vice Chairman, Korangi Association of Trade and Industry (KATI) Jaweed Qureshi has condemned the once again increase in oil prices and termed it an unjustified act. He pointed out that last time when prices of petroleum products were reduced it was demand of the business community to reduce them further. Qureshi said that industries in Karachi and other parts of the country are now operating on oil due to continues outrange of power and long hours load shedding of power and gas. Increase in oil price will have adverse impart on cost of manufacturing and transpiration.

He said oil price will ultimately increase transportation charges and that will impact not only the cost of industrial manufacturing but also have negative impact on cost of vegetable which may increase many times. He said that increase in oil and CNG price will have 5 to 8 per cent increase on cost of manufacturing.

Former Chairman Export Sub Committee of Karachi Chamber of Commerce and Industry (KCCI), Aga Shahab said that increase in petroleum products prices will have 5 to 10 percent impact of cost of manufacturing. He was of the view that the government has no option but to pass on increase in oil prices in international market to consumers. He emphasized the need of industrial revolution to over come the impact of increase in oil prices in the country.

He expressed that industries in general and small and medium size industries in particular provide jobs to unemployed youth. Policies should be made in a way that industries should run 24 hours a day and seven days a week.

Mohammad Saeed Khan another industrialists, said this was the democratic Government’s “gift” to the common man on completion of almost five years in office. He alleged that the Government’s inept handling of the economic situation is responsible for this. “The gross mismanagement of food and general economy by the present regime has led to the decline of the rupee as well as the rise in prices of petroleum products, essential goods and power and gas tariffs.

He said that it is a cruel blow on people who are already suffering from severe price rise. He urged the Centre to roll back the hike. The increase will affect the poor and the middle class people, he said.