Karachi Goods Transporters Announce 20% Fare Increase

KARACHI: In response to the recent surge in petroleum product prices, Karachi goods transporters have announced a 20 percent increase in fares.

Noor Khan Niazi, President of the Goods Carrier Association, explained that the higher diesel prices will inevitably lead to increased transportation costs, which will ultimately be passed on to the public. Niazi warned that this fare hike is expected to trigger a wave of inflation, affecting both consumers and the agricultural sector.

Niazi highlighted that the rising cost of spare parts is also contributing to the fare increase. Furthermore, he pointed out that toll taxes have been raised since July, urging the government to reconsider these decisions to alleviate the financial burden on transporters.

The government raised petroleum product prices starting July 1st. Petrol prices increased by Rs7.45, reaching Rs265.61 per liter, while the price of high-speed diesel (HSD) rose by Rs9.56 per liter to Rs277.45. This increase in fuel prices has had a significant impact on the cost of goods transportation in Karachi.

Meanwhile, The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide strike on July 5 in protest against the government’s decision to impose a 0.5% advance tax.

Abdul Sami Khan, the chairman of the PPDA, stated that talks with the government are scheduled for Monday in Islamabad. If these discussions fail, petrol pumps across Pakistan will shut down as planned. Khan expressed concern over the advance turnover tax, suggesting that the strike could extend beyond a single day if necessary.