KARACHI: Business leaders have warned that the hike in petroleum product prices will severely harm the industrial sector, increase production costs, andfurther erode the competitiveness of Pakistani goods in global markets.

They also cautioned that the burden will ultimately fall on consumers, who will face higher transport fares and inflationary pressures.

The government has increased petrol prices by Rs5.36 per litre and high-speed diesel (HSD) by Rs11.37, raising the rates to Rs272.15 and Rs284.35 per litre, respectively.

Korangi Association of Trade and Industry (KATI) President Junaid Nagi stated that unless input costsare brought under control, exports will continue to lose ground to regional competitors, such as India and Bangladesh. `Traders and manufacturers are being crushed under the weight of high electricity, gas, and fuel tariffs, along with excessive taxation. This is sheer injustice,` he said.

Mr Nagi urged the government to withdraw the recent fuel price hike, warning that failure to do so could force factory closures, drive inflation higher, and lead to mass unemployment. `Expensive fuel affects the common man the most, he added, noting that freight and public transport fares would rise immediately.Mian Zahid Hussain, Chairman of the Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), described the hike as a `ticking time bomb` that will set off another wave of inflation. He saidthatrepeatedincreasesinfuel prices are worsening the financial hardship faced by middleand lower-income households.

`Those using motorcycles, rickshaws, and small vehicles for daily commuting will bear the brunt of rising petrol costs, while diesel hikes will increase transport, agriculture, and food costs, affecting businesses and the general public alike, Hussain warned.-Staff Reporter