Business Community Urges Predictable Petroleum Pricing to Protect Industry
Business leaders call for a predictable petroleum pricing system in Pakistan.
The business community has urged the government to review taxes and levies on petroleum products and reconsider its daily fuel pricing policy.
Business leaders said frequent price changes make it difficult for companies to calculate production costs. They also warned that uncertainty is affecting business planning, pricing decisions and commercial agreements.
KATI Raises Concerns Over Daily Price Changes
Korangi Association of Trade and Industry (KATI) President Muhammad Ikram Rajput said daily fuel price increases were creating serious difficulties for industry.
He said the policy was adding to economic uncertainty instead of providing stability. According to Rajput, petrol and diesel prices had risen by about Rs22 and Rs14 over three days.
The increases have added pressure on consumers already facing high inflation.
Rajput said government data showed taxes, duties and levies made up about 37% of petrol prices. They accounted for around 31% of diesel prices.
He urged the government to review this structure instead of passing the full impact of global oil price changes to consumers and businesses.
Business Leaders Seek Fairer Pricing Mechanism
Rajput also called for immediate relief when international oil prices fall.
“It is not acceptable for increases to be passed on immediately while reductions are delayed,” he said.
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He urged the federal government to reconsider daily petroleum price revisions. He also called for consultations with industrial, commercial and transport sectors.
According to Rajput, a transparent and predictable pricing system could protect businesses and consumers from unnecessary price shocks.
SITE Association Proposes 15-Day Pricing Cycle
SITE Association of Industry President Abdul Rehman Fudda also opposed daily petroleum price revisions.
He proposed a 15-day pricing cycle instead. Fudda said the system would help industrialists calculate production costs and negotiate commercial agreements with greater certainty.
He said repeated fuel price increases were especially damaging while the government was seeking higher exports and greater investment.
Fudda added that the policy could also undermine efforts to improve the ease of doing business.
FPCCI Warns of Pressure on Industrial Sector
Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President Atif Ikram Sheikh expressed concern over the impact of global oil market volatility on Pakistan’s economy.
He warned that repeated international oil shocks, combined with high domestic levies, were weakening export competitiveness.
Sheikh said the pressure could also widen the trade deficit and increase the risk of industrial closures.
“On the one hand, committees are being formed and commitments are being made to increase exports and facilitate businesses,” he said.
“On the other hand, policies are being pursued that are making it increasingly difficult for industries to remain operational.”
SMEs Face Growing Business Pressure
Sheikh said small and medium-sized enterprises were facing particularly difficult conditions.
He warned that continued fuel price volatility could push more SMEs into financial distress.
Business leaders therefore called for a pricing framework that offers greater predictability. They said stable fuel costs are essential for production planning, investment decisions and export competitiveness.
