Hike in fuel prices to trigger joblessness

Reacting to a major increase in petroleum prices by the interim government, business leaders on Wednesday warned that the decision will cause the closure of 50 per cent of industrial units and trigger mass unemployment. They said trade and industry, which are already struggling to survive the power tariff hikes of almost Rs10 per unit, cannot bear the increase of Rs17.50 and Rs20 per litre in the prices of petrol and diesel, respectively. The increase will fuel the existing inflationary pressures and raise the costs of living and manufacturing, they said. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) acting president Suleman Chawla said the apex chamber repeatedly asked the last coalition government to address problems like the handling of oil cargoes, adjustments in refining processes and transactional procedures in the import of Russian crude. International oil markets are in a flux, he said, noting that demand for petroleum products internationally will remain low for a couple of years owing to a slowdown in the global economy. Domestic demand by refineries will not even cross 150,000 barrels per day for imported crude due to the unprecedented slowdown of the national economy, he said.