Fix petroleum prices daily: President KATI demands PM, Ogra to review decision

KARACHI - President of the Korangi Association of Trade and Industry, Muhammad Ikram Rajput, has called on the Prime Minister, Federal Minister for Petroleum, and OGRA to reassess their decision to set petroleum prices daily. Rajput suggested creating a transparent and predictable pricing system to shield the business sector, the public, and the national economy from erratic fluctuations.

He emphasized that Pakistan's economy requires policy consistency, economic stability, and business confidence, rather than daily price changes.

Rajput expressed significant concerns over the government's choice to fix petroleum product prices daily, believing it would cause major hardships for industry, trade, transport, and the general public. The price of petrol rose by approximately Rs22, while diesel increased by over Rs14 over the last three days, adding additional strain to already inflation-hit individuals.

If fuel prices were to vary daily, industrialists and traders would struggle to accurately ascertain production costs and product prices, severely impacting business planning.

According to official data, roughly 37% of petrol and 31% of diesel prices comprise various taxes, duties, and levies. Rajput proposed that the government also consider revising the taxation system, rather than merely transferring the burden of global price fluctuations directly onto the public and industry. He noted that a new fuel price every day equates to new transport costs, fares, and product prices.

The increase in transportation expenses, container services, and the delivery of raw materials and finished goods would ripple through the entire supply chain, impacting the prices of every sector, including essential commodities.

Furthermore, daily price changes would negatively affect the competitiveness of the export industry as businesses would find it more challenging to estimate production costs accurately. Investor confidence may also weaken under such circumstances. Small and medium-sized enterprises would bear the brunt of this situation. Rajput stressed that the benefits of reduced global petroleum product prices should be immediately passed onto the public, industry, and transporters.

He found it unacceptable that price increases are promptly transferred, while decreases are delayed.