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Kerala

Merchant bodies criticise price increase

Staff Reporter

Rs 50-hike in cooking gas price to hit people hardest

Higher price will hit competitiveness, say traders
Kerala will be affected more: merchants

KOCHI: The Cochin Chamber of Commerce and Industry has said that raising the price of petroleum products would hit the competitiveness the country was trying to build and make the life of common man even harder with the prospect of a hike in the prices of essential commodities.

A spokesman for the Chamber said that the Chamber understood the compulsions of the Union government in hiking the price of petroleum products.

This could have been done in small doses over a period of time, said the spokesman pointing out that India could not stay insulated from developments in the world market where crude oil prices had hit a record high.

Raising the price of cooking gas by Rs.50 is going to hit ordinary people the hardest. They are already at the receiving end of the rising price of essential commodities, said the Chamber spokesman.

The effect of petroleum products price hike will be passed on from one person to the other as higher freight rates will translate into higher prices for products, including food items, the spokesman added.

Ernakulam Merchants’ Union termed the hike in the price of petroleum products on Wednesday too cruel on the common man already hit by the price rise. The Merchants’ Union felt that the State government should announce some relief in taxes taking the special circumstances into consideration.It is obvious that a State like Kerala where most of its needs are met from supplies from outside will be hit hard by the fuel price hike, said a statement from the president of the Merchants’ Association, K.M. Mohammed Sageer.

The Merchants’ Association said that protests like hartals would hit the public and private sectors alike and that such action should be abandoned.

Kerala Chamber of Commerce and Industry welcomed the State government decision to ease the cess on petroleum products, but slammed the Union government for hiking the price of fuel oils and cooking gas.

A statement from the president of the Chamber E.S. Jose said here that about 95 per cent of the commodities needed by the State are brought by lorries.

Rise in the price of diesel will hit the State hard, he said.

Meanwhile, All Kerala Liquid Transport Contractors’ Welfare Association has backed the hartal called by Left Democratic Front on Thursday against the hike in the price of petroleum products.

A statement from the Association said it would participate in the hartal. The statement said that tanker lorry owners were already burdened by heavier expenses on spares, speed governors and welfare fund contributions.

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