ISLAMABAD, Aug 23,: The business community has demanded that the government reduce the prices of petroleum products according to the decrease in the rates of crude oil in the international market, WealthPK reports.

Mian Anjum Nisar, the former president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), said that oil prices plunged to below $90 a barrel and the rupee jumped by around Rs30 against the dollar during the last fortnight but the government announced a hike of Rs6.72 per litre in the price of petrol.

In a press release, he said that the hike in petroleum prices would increase inflation in the country. He said that a large number of filling stations remained closed in the country despite the fact that there was no strike or shortage of petroleum products. He alleged that oil marketing companies and petroleum dealers created an artificial fuel crisis as the government increased the price of petrol by Rs6.72 per litre.

Mian Anjum said that oil marketing companies and dealers usually stopped the supply of petrol and diesel for a couple of hours to make additional profit. “However, this time around the suspension lasted for almost an entire day. Many petrol pumps had gone dry by Monday evening and new supplies came on Tuesday afternoon,” he added.

He demanded that the government reduce the prices of petroleum products without any delay. He said that the government should slash the prices of petroleum products immediately as rates of the commodities had already decreased in the international market.

The FPCCI former chief said that a reduction in the prices of petroleum products would decrease inflation in the country in an effective and tangible manner than raising the interest rate to a 14-year high of 15 percent.

He said that the effects of the increase in the prices of petroleum products had not yet materialised in the country. He added that inflation would continue to rise in the coming weeks if the relief from the international market was not shifted to the consumers.

Mian Anjum said that global macroeconomic sentiments were not optimistic. He said that growth forecasts had been significantly lowered to the tune of being recessionary. “The phenomenon may drive international oil prices even lower than $90 per barrel in coming weeks. However, we have to tread a cautious path and gradually but progressively reduce the domestic petroleum prices,” he added.

He also called for prudent and diligent regulation of the markets to allow the people to benefit from the downward trends in international oil prices, edible oils and initial signs of receding supply constraints in some other commodities.

Mian Anjum said that the local industry was already facing cut-throat competition in both national and international markets as it was directly affected by the fluctuation of oil prices, which also increased. “Its negative impact can be witnessed in the hike of cargo freight charges, which adds cost to industrial production at all stages,” he said in the statement, available with WealthPK.

Credit: Independent News Pakistan-WealthPk