Pakistan’s high petroleum prices are hurting export competitiveness and driving up business costs, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said on Monday.
Sheikh urged the federal government to take a more realistic approach to fuel pricing, particularly high-speed diesel (HSD), arguing that lower diesel prices could reduce costs across transport, agriculture and manufacturing.
He said expensive diesel was increasing logistics and transportation costs and adding to the cost of agricultural supply chains, putting further pressure on businesses and consumers.
Pakistan cannot improve its regional competitiveness or significantly increase exports while fuel costs remain high. He called for a review of the Petroleum Development Levy (PDL) and other taxes that contribute to domestic fuel prices.
Sheikh said global crude oil prices were only one factor behind fuel costs, while taxes and the PDL had also increased the burden on businesses, particularly small and medium-sized enterprises and large manufacturers.
He said reducing diesel prices would lower the cost of transporting goods and could provide relief to producers and consumers.
Lower diesel costs would also reduce expenses for farmers using tractors and tube wells, he added, potentially helping contain food prices.
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