The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has expressed unhappiness over the hike in petrol and diesel prices by the Union government though there has been a steep fall in oil prices globally.
The COVID-19 pandemic has had disastrous consequences for citizens and wealth creators, the trade body said, adding that industry and trade establishments have already suffered severe losses and many MSMEs were not in a position to operate any more.
The federation said that all such establishments were of the view that the trial run attempts to restart operations had become a futile exercise due to various reasons, including want of orders for products/services, non-availability of raw materials, and finances. In addition to this, the fuel price hike will be another burden, said C.R. Janardhana, president, FKCCI.
FKCCI said in the statement that the hike in fuel prices would have a cascading effect on industries, which in turn will increase product costs and have an adverse impact on airfare.
The diesel price hike has also directly impacted industries, particularly MSMEs that are dependent on captive power generation for their production. This impact will increase the cost of production, which will be a hindrance to competing in the global market. It indicates that the government is keen on generating revenue rather than controlling prices, FKCCI said.
