A massive increase in petroleum product prices, driven solely by government policy, will have a ‘360-degree impact’ on the economy, threatening industrial survival, export earnings, and potentially fuelling social instability, a prominent industry leader has cautioned.
Abdul Rehman Fudda, President of the SITE Association of Industry, today voiced grave concerns over the extraordinary price adjustment, stating it would severely damage the nation”s industrial and export competitiveness.
Mr Fudda clarified that the latest price rise was not linked to international oil market fluctuations but was a direct consequence of government decisions, citing the withdrawal of a Rs95.59 per litre Price Differential Claim (PDC) subsidy and the imposition of an additional Rs55.24 per litre petroleum levy.
The industrialist highlighted that these two measures alone have burdened consumers with an additional Rs150.83 per litre. ‘This is purely a result of levies, taxes, and war-related conditions,’ he asserted.
Contradicting the logic of the hike, the SITE chief pointed out that the government-induced surge occurred despite a fall in the underlying cost of fuel. He stated that the net ex-refinery price had actually declined by Rs13.58 per litre, from Rs190.94 on March 7 to Rs177.36 on April 2.
Recalling a previous price increase on March 7, Mr Fudda noted that SITE had at that time urged for the withdrawal of state-imposed charges, which then stood between Rs118 and Rs121 per litre. ‘Now, levies and taxes alone amount to about Rs265 per litre,’ he lamented.
The business leader warned that the steep increase would be particularly damaging to industries, especially export-oriented manufacturing, at a time when exports are already in decline. ‘This will not only erode foreign exchange earnings but also accelerate unemployment,’ he said.
Abdul Rehman Fudda concluded with a stark warning about the societal consequences, stressing that the common person, particularly labourers and the service class, would face a struggle for survival. ‘Anarchy will rise, and the government itself will be weakened by this decision,’ he said.