KARACHI: The All Pakistan Oil Tankers Association on Monday threatened to go on strike if the government did not review its decision to increase the price of petroleum products by up to 6.5 percent.
On Sunday, Pakistan announced the new prices following a 1.93 percent surge in international crude oil market.
With immediate effect, a notification said, the prices of petrol and diesel, widely consumed in the transport sector, would be increased by Rs6 per litre while kerosene and light diesel oil prices were up by Rs3 per litre.
“We have demanded the government take back the decision, otherwise we will go on strike countrywide,” Israr Ahmed Shinwari, a spokesman for the All Pakistan Oil Tankers Association, told Arab News.
Yousaf Baig Mirza, Special Assistant to the Prime Minister said the fuel price hike was linked with international prices. “Government has absorbed half of the impact and increased only PKR 6 against recommendation of more than PKR 11. There was no option but to raise the prices. Government after adjustment has passed on half of the burden to the public”, he said.
Economists said though the government had not passed on the full impact of international prices to consumers, they would be hit by overall inflation due to rising transportation and allied costs.
On Monday, Pakistan’s annual consumer price inflation rose to 9.41 percent year-on-year in March from 8.21 percent a month earlier, the Bureau of Statistics said.
“We estimate around 2.5 to 3 percent increase in inflation on an annual basis,” senior economist Muzzamil Aslam said.
The business community also criticised the government over the price hike and called for its immediate withdrawal.
“The decision will increase problems for the private sector and the general public,” Ahmed Hassan Moughal, President of the Islamabad Chamber of Commerce and Industry, said.
