Sheikh Amir Waheed, ICCI President, said in a statement issued here Thursday that OGRA has recommended Rs. 12.50 and Rs. 8.37 per litre increase in the prices of high speed diesel and petrol respectively, which was not justified, especially at a time when the business class was already facing many challenges in promoting business activities.
He said Pakistan was producing most of the electricity through oil fuel which has led to the high cost of production making our exports uncompetitive in the international market.
They were afraid that if any further increase was made in POL products, it would cause further slump in our exports and weaken the economy.
They said that the crude oil price in international market was around $68/barrel which did not justify any further hike in POL prices. He said the increase in POL prices would put more burden on the common man and create lot of difficulties for the business class.
He said government has imposed many taxes on POL prices which was not justified. He said that government was receiving 27.5 percent GST on HSD and 17 percent GST on other POL products.
In addition to that, it was charging Rs.8 per litre on HSD as petroleum levy and Rs. 10 per litre on petrol.
He urged that instead of making any increase in POL prices, government should reduce heavy taxes and levies on these products that would bring down the high cost of doing business, facilitate growth of exports and yield multiple benefits to the economy.