KARACHI: With the removal of fuel price cap and subsidy by government on petroleum by raising its price by Rs 30 per litre, the economy has landed into a very difficult situation so far as economic factors, existing high inflation and day-to-day affairs are concerned, says Ateeq Ur Rehman, an economic and financial analyst.
Under the current circumstances the common man, who uses the existing dilapidated public transport system to commute to and from work, is under extra burden, said Mr Rehman.
Increase in prices of petroleum products has turned a common man’s pain into agony, he said. He is already suffering because he has to make use of a broken public transport system but now he will have to pay extra to continue to use the same poor system.
Further, because of a shortage of RLNG and CNG the rickshaw owners are facing immense difficulty in getting passengers due to the high fare they must charge owing to changes in usage of fuel and high petroleum prices.
He pointed out that road transport associations have started issuing notices about raise in fares by nearly 30 percent, eventually increasing already inflated cost of production, and prices of consumer goods like milk, vegetable, fruit, confectionery, meat, flour, pulses, and eatable oil.
The latest increase in petroleum prices will adversely affect the electricity tariff which will jump massively and this will be like pouring salt on the wounds of the common man, said Mr Rehman.
“We normally have electricity shortfalls and due to extensive heat wave the usage of generator sets is increasing, which will only make the burden on common people unbearable,” he said.
He also warned of further hike in petroleum prices. “... (T)he logistics and supply chain is going to be tough, the air and train fares are expected to skyrocket. We cannot ignore the concerns of exporters over this government decision.
“The relief provided to the exporters earlier in the wake of Covid-19 pandemic was a useful tool for them to manage their businesses/ exports in times of turmoil, but what will happen when the cost of doing business and cost of production pushes them out of international competition,” he wondered.
Copyright Business Recorder, 2022