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Hike in prices of petrol & diesel would greatly augment inflation: Khawaja Jalaluddin Roomi

Hike in prices of petrol & diesel would greatly augment inflation: Khawaja Jalaluddin Roomi

MULTAN: The business community strongly reacted to the sharp escalation in the prices of petroleum products from Rs.4.27 to Rs.5.97 per liter and called upon the federal government to reconsider its decision.

Ex-president of Multan Chamber of Commerce and Industry Khawaja Jalaluddin Roomi while talking with Customs Today said that inflation is currently hovering around 16 percent. He said that the huge increase in the prices of petrol and diesel would greatly augment inflation and have a knock-on effect on the cost of all economic activity.

He said that government should provide relief to consumers by cutting the taxes on petroleum products and introducing per liter tax instead of ad-valorem tax. Making the lame excuse of tight fiscal position, the caretaker passed on the full impact of the increase to the consumers “now petrol is available at Rs.100/liter, High Speed diesel price has increased from the current Rs105.31 per liter to Rs119.31 per liter.

Similarly, the government also increased the price of kerosene oil by Rs3.36 per liter. Kerosene oil increased from Rs84.34 per liter to Rs87.7 per liter. For Light Diesel Oil (LDO), the government increased its price by Rs5.92 per liter from existing Rs74.99 to Rs80.91 per liter.

He said that there was no truth in government’s claim that increase in the petroleum prices is caused due to increase in petroleum prices in international market and depreciation of rupee against dollar.

The financial impact of the above dispensation will be implemented through revision of Sales Tax Rates and Petroleum Development Levy. It is the second consecutive month the caretaker government increased the prices of petroleum products.

The caretaker government had already increased the oil prices up to Rs6.55 per liter for the previous month.

He said that transport fare has been increased by 30 percent from transporter while freight Charges has increase 30 to 40 percent. Prices of daily use items had also gone high sky and it expanded difficulties of common man after recent hike in petroleum prices.