PIAF rejects massive jump of Rs30/ litter in POL prices

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The Pakistan Industrial and Traders Associations Front (PIAF) has rejected huge jump in prices of petroleum products despite the fact that inflation rate is hovering around 12 percent due to more than 68 percent record jump in fuel prices during the last couple of years, warning the authorities that inflation above 6 percent could hurt economic growth.

Senior vice chairman Nasir Hameed, in a joint statement with vice chairman Javed Siddiqi, said that federal government on Thursday announced an increase of petrol and High Speed Diesel (HSD) prices by Rs 30 per litre against for first quarter of June and last five days of May.

Nasir Hameed said that oil prices and inflation are closely connected in a cause-and-effect relationship. As fuel rates move up, inflation, which is the measure of general price trends throughout the economy, follows in the same direction upward. On the other hand, if the rates of fuel fall, inflationary pressures start to drop.

He urged the government to take concrete measures for easing out inflation that has further increased due to rise in oil prices and other essential commodities.

He said that inflation is on higher side due to the impact of government’s economic policies of soaring fuel rates, enhancing power and gas tariff, depreciating the local currency and imposing exorbitant duties on imported industry raw material.