Home Trade industry The massive jump in oil prices will hit trade and industry hard

The massive jump in oil prices will hit trade and industry hard


ISLAMABAD – The business community has dismissed the huge rise in the prices of petroleum products despite the fact that the inflation rate hovers around 12% due to the record rise of more than 68% in fuel prices in the past two years, warning authorities that inflation is above 6 percent could harm economic growth.
Pakistan Industrial and Traders Associations Front Senior Vice President Nasir Hameed in a joint statement with Vice President Javed Siddiqi said that oil prices and inflation are closely linked in a causal relationship. As fuel prices rise, inflation, which is the measure of general price trends across the economy, follows the same upward direction. On the other hand, if fuel prices fall, inflationary pressures begin to decline.
Nasir Hameed urged the government to take concrete measures to ease the inflation which has further increased due to rising prices of oil and other essentials. He said inflation was higher due to the impact of the government’s economic policies on soaring fuel prices, improved electricity and gas tariffs, depreciation of the local currency and l imposition of exorbitant duties on raw materials imported from industry.
Nasir Hameed said high-speed diesel is mainly used in transport and agriculture sectors. Therefore, any increase in its price will have an inflationary impact. The price of kerosene has also increased, which is used in remote areas where liquefied petroleum gas is not available for cooking purposes. So any increase in its price will have an impact on the lives of the poor. The price of light diesel has been increased, which is used in industries and its price is also increasing.
Javed Siddiqi called for putting the economy on a balanced and sustainable growth path, addressing underlying structural vulnerabilities, as weak export growth, limited foreign exchange reserves, economic documentation and Rising food inflation remain major challenges for the economy.
Referring to data from the Pakistan Bureau of Statistics, the PIAF Chairman said that the country’s headline inflation reached 12.3%, the highest inflation rate since March 2020. In March 2020, the inflation rate Inflation was 10.20%, but it declined over the following months and hit 8.59 in June. Once again, it has increased to 12.3 percent now.
The Vice President of PIAF asked the Ministry of Finance to devise a strategy to control and mitigate the impact of inflation. He said that the result of stabilization policies, interventions in the agricultural sector, rigorous monitoring at the federal and provincial levels and favorable weather conditions can bring better results in reducing inflation and supporting the economy towards recovery. growth and productivity.
PIAF Vice President Said Provincial Governments Monitoring Price List Display and Item Quality in Open Market and CCP’s Effective Measures to Control Cartelization and Unfair Profits Can Also Control Inflation in a certain way.