After the recent hike in petrol prices, freight costs have risen by 60 per cent by the goods transporters in Pakistan, raising concerns about further inflation in the country.
The Pakistan Goods Transport Alliance announced the nationwide rise as per the information, right after the government had risen the prices of petroleum products. The move will have a huge influence on the cost of transport and the prices of basic commodities.
In a statement, President of the alliance, Malik Shehzad Awan, condemned the fuel price increase, saying that it is now impossible to operate on the same freight rates as it used to be under the current economic conditions. He said that transporters were left with no choice but to raise fares.
Awan recommended that the government cancel more taxes, such as toll taxes, immediately in case the fuel price rise could not be avoided, so that the financial burden applied on transporters could be lessened.
He also urged the government to stop imposing fines by the motorway and the traffic police on the grounds that these would ease the cost of operation in the transport industry.
The transport leader warned that if the government fails to address these demands, the increased transportation costs will ultimately be passed on to the public, leading to higher prices of essential goods across the country.
The development came after the government increased petrol prices in Pakistan, with rates going up to Rs458.40 per litre.
The diesel prices have been increased to Rs520.35 paisa. The new prices will be applicable from today.
The petrol price has increased by Rs136.83 per litre. Additionally, high-speed diesel price increased by Rs184.14 per litre.
Previously, the price of petrol was Rs322 per litre. In addition, a petrol subsidy of Rs100 has also been announced for motorcycle users.
Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik held an important press conference yesterday to discuss the current petroleum pricing situation.
During the press conference, the Finance Minister said that the new prices of petroleum products will be implemented from today.
The Petroleum Minister said that the fire of war has engulfed the entire world, and the government has no role in creating the storm.
He said that a subsidy of Rs129 billion has been given since March 1, and despite this subsidy, it has been decided to increase the prices of petroleum products.
This is because the IMF had stopped giving subsidies on petroleum products.
The Petroleum Minister further said that the Prime Minister decided to ground 60 per cent of the vehicles.
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