Govt urged to review petroleum pricing mechanism

KARACHI: The Korangi Association of Trade and Industry (KATI) president, Muhammad Ikram Rajput, has called for a review of Pakistan's petroleum pricing system and the introduction of a transparent, predictable mechanism for determining prices. Rajput believes such a system, which could be set monthly or every 15 days, would enable industrialists, traders, and transporters to more accurately estimate costs and make better business decisions.

He welcomed the decision by goods transporters to postpone a nationwide strike for 40 days, following successful negotiations with government representatives, calling it a positive development for the national economy and the supply chain. Rajput acknowledged the Prime Minister's effective role in addressing longstanding transport sector issues and resolving the current crisis.

The nine-day strike by goods transporters severely disrupted industrial and commercial activities, exports, imports, supply chains, and overall business operations across Pakistan, he said. He emphasized the critical role of goods transportation in the economy, stating that when transportation stops, the impact is felt across the entire economy.

Rajput expressed concern about the existing petroleum price determination mechanism, which is frequently and unpredictably altered, increasing production, transportation, and business costs, as well as making long-term planning difficult for industry and trade. He urged the government to ensure timely implementation of all commitments and decisions agreed upon during the negotiations to permanently resolve transporters' issues and prevent future nationwide strikes or supply chain disruptions.

Rajput stressed that Pakistan cannot afford prolonged economic disruptions amid current regional and global circumstances and urged all stakeholders to fulfill their responsibilities while placing national interest above all else.