ISLAMABAD, DEC 1 /DNA/ – As the Ministry of Finance has announced an increase in petrol prices by Rs 3.72 per litre for the next 15 days the Pakistan Industrial and Traders Associations Front (PIAF) has asked the government to withdraw the anti-industry decision, warning the  ofauthorities that inflation above six percent could hurt the economic growth and only a prudent approach could keep it in under the control.

PIAF Chairman Mian Faheemur Rehman Saigol in a joint statement along with senior vice chairman Nsrullah Mughal and vice chairman Tahir Manzoor Ch said that a continuous jump in fuel prices have pushed up the weekly inflation. The 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 said.

Referring the data of Pakistan Bureau of Statistics (PBS) Mian Nauman Kabir said the Sensitive Price Indicator based weekly inflation for the week, for the combined consumption group, witnessed an increase of 2.29 percent compared to the previous week, mainly due to the increase in fuel prices in the country.

The SPI inflation for the combined consumption group was recorded at 32.32 points compared to 29.36 points registered in the previous week. In the same way, as compared to the corresponding week of last year, the SPI inflation for the combined consumption group in the week witnessed an increase of 4.77 percent, he added.

Faheem Saigol called for putting the economy on a balanced and sustainable growth trajectory, addressing the underlying structural vulnerabilities, as low export growth, limited foreign exchange reserves, documentation of economy and higher food inflation are still major challenges to the economy.

Tahir Manzoor Ch 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.

Nasrullah Mughal asked the Ministry of Finance to devise a strategy to control and ease out the impact of inflation. He said policy measures like zero borrowing by government from the State Bank of Pakistan in current financial year would decrease the local wheat price.

Reduction in fiscal deficit, primary surplus H2 of FY 24; monetary tightening and demand compression by austerity; complete restriction on supplementary grants are positive examples, he added. The downward trajectory in crude oil in the global market should result in downward pattern in domestic prices, he said.

According to a notification issued by the Ministry, the price of petrol has been raised to Rs 252.10 per litre, while high-speed diesel has seen an increase of Rs 3.29 per litre, bringing it to Rs 258.43.

Conversely, the price of kerosene oil has been reduced by Rs 0.62 per litre, now priced at Rs 164.98, and light diesel oil has decreased by Rs 0.48 per litre, lowering it to Rs 151.73.