Traders Demand Energy Tariff Reduction Following Cut in Oil Prices
In response to a significant reduction in petrol prices, business leaders in Pakistan are urging the government to establish a stable energy policy, reduce electricity and gas tariffs, and address utility outages and low pressure issues.
Karobar
KARACHI 10/17/2023: In response to a notable reduction in petrol prices, business leaders are urging the government to adopt a stable policy, lower electricity and gas tariffs, and address gas outages and inadequate pressure issues. They emphasize the need for immediate action to alleviate the burdensome cost of energy for consumers.
Atique Mir, Chairman of All Karachi Tajir Ittehad, expressed
"If the government establishes a sustainable policy for at least three months, this reduction will positively impact the general public. I also appeal for an immediate reduction in power and gas tariffs, especially as the winter season approaches, when even middle-class individuals struggle to afford hot water for daily needs."
Mir further highlighted the critical role of electricity and gas in daily life and business, stating that high tariffs often force people to resort to illegal means to secure these utilities.
He called upon the government to stabilize energy tariffs and further lower prices to counteract the rising inflation.
Meanwhile, the Karachi Chamber of Commerce and Industry (KCCI) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) expressed their appreciation for the significant drop in petrol prices through official statements.
The government's decision to revise the consumer price of petrol from Rs323.38 per liter to Rs283.38, a reduction of Rs40, is attributed to the declining trend in the international market and the strengthening of the Pakistani rupee against the US dollar. This price cut is effective from October 16. Additionally, the price of high-speed diesel was reduced from Rs318.18 per liter to Rs303.18, a decrease of Rs15.
Iftikhar Ahmed Sheikh, President of KCCI, commended the decision by caretaker Prime Minister Anwaarul Haq Kakar to lower prices, considering the stronger rupee and falling oil prices in global markets. Sheikh stressed that this reduction would not only provide relief to the public and businesses facing inflationary pressures but also contribute to the national economy's strength.
Sheikh highlighted that this marks the second consecutive reduction in petroleum prices, which will help mitigate inflation to some extent. However, he emphasized the need for an effective price control mechanism and strict enforcement of government-set prices for essential household items to provide substantial relief to the impoverished.
He also called on the government to devise a formula to reduce transport fares, ensuring that all citizens benefit from the price reduction.
FPCCI President Irfan Iqbal Sheikh praised the Chief of Army Staff for swiftly reducing economic uncertainty, restoring stability, and fostering positive sentiment in the country. He emphasized the importance of controlling speculative trading of the dollar and curbing smuggling as effective measures to steer the economy in the right direction.
