KP traders reject fuel price hike, warn of economic fallout

The business community in Khyber Pakhtunkhwa has strongly rejected the recent increase in petroleum prices, warning that the move will trigger widespread economic disruption, industrial slowdown and rising inflation across the province and the country.
In a joint statement issued here on Friday, leaders of the KP Traders Association and the Peshawar Chamber of Small Traders and Small Industries termed the increase in petrol price to Rs137.23 per litre and diesel to Rs184.49 per litre as “unacceptable” and damaging to the fragile economy.
The statement, signed by association president Malik Mehralahi, chamber president Shakeel Ahmed Khan Saraf, spokesperson Shahzad Ahmed Siddiqui, and several representatives of trader bodies from across the province, expressed deep concern over the impact of the hike on businesses and the public.
They warned that the sharp increase in diesel prices, in particular, would severely affect the industrial sector, which was already struggling with high electricity costs and law and order challenges.
“This will prove to be the last nail in the coffin for many industries,” the statement said, adding that manufacturers may be forced to scale down or halt production due to soaring operational costs.
The traders noted that the rise in fuel prices would significantly increase transportation and freight charges, disrupting supply chains.
The higher cost of moving raw materials to factories and delivering finished goods to markets, they said, could render local products uncompetitive.
They also cautioned that the surge in transport costs would directly impact prices of essential commodities, including flour, pulses, rice, sugar, ghee and vegetables. “When transportation costs rise, the burden ultimately falls on the common consumer,” the statement added.
The business leaders warned of potential large-scale industrial closures and job losses if the government failed to review its decision, urging authorities to take immediate steps to provide relief to both businesses and the public.