Karachi: Abdul Rehman Fudda, President of the S.I.T.E. Association of Industry, has voiced serious concerns over the recent sharp increase in petroleum oil and lubricant (POL) prices, which have surged by up to Rs55 per liter. In response to the hike, attributed to ongoing tensions between the United States and Iran, Mr. Fudda has called on the government to urgently reduce taxes on petroleum products to alleviate the economic strain on consumers and industries.
According to S.I.T.E Association of Industry, Mr. Fudda emphasized that the government should mitigate the impact of rising international POL prices by cutting petroleum taxes instead of transferring the full burden to consumers. He warned that the absence of tax relief could exacerbate inflation and further stress the economy. The increase, he noted, would have widespread negative effects, especially on industries, leading to higher transportation costs and elevated prices of industrial inputs, which could undermine the competitiveness of export-oriented sectors.
Mr. Fudda highlighted that the escalation in fuel prices would raise the overall cost of living, disproportionately affecting those at or below the poverty line. He pointed out that the price hike was implemented despite existing fuel stocks being purchased at lower prices. To address the situation, he proposed a reduction in fuel quotas for government officials and members of national and provincial assemblies by at least 50 percent, noting that consumers are already burdened with taxes and margins of Rs121 and Rs118 per liter for petrol and diesel respectively.
In light of the current emergency, Mr. Fudda reiterated his appeal for the government to absorb the increase in international POL prices through tax reductions, thereby preventing the direct transfer of costs to consumers.
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