Pakistan’s business and industrial community has raised strong concerns over the government’s latest fuel price adjustment, warning that the increase will amplify inflation, raise production costs and weaken export competitiveness at a time of already slowing economic activity. The government recently increased both petrol and diesel prices by Rs26.77 per litre, pushing petrol to Rs393.35 per litre and diesel to Rs380.19 per litre after official approval. The revision has been widely criticised across trade and industry circles, who argue it will directly inflate logistics and input costs across the economy.

Industry stakeholders say the price hike will cascade through supply chains, increasing transportation expenses and raising the cost of goods and services nationwide, with knock-on effects on inflation and business margins. Senior Vice President of the Federation of Pakistan Chambers of Commerce & Industry and Chairman Businessman Panel Progressive (BMPP), Saquib Fayyaz Magoon, said the move would significantly increase production costs and make exports less competitive globally. He also pointed to existing economic slowdown measures, including reduced working hours, which he said were already compressing business activity.

He urged the government to ease the burden by reducing taxation on petroleum products instead of passing costs onto consumers and industry. Chairman of the Pakistan China Business Council and BMPP Supreme Council member Shabbir Mansha Churra suggested that Pakistan should leverage diplomatic and strategic relations with Gulf partners, particularly Qatar and Saudi Arabia, to secure cheaper crude oil imports. He also stressed the importance of continued diplomatic engagement to mitigate risks of global energy shocks.

He warned that higher fuel costs would inevitably push up production expenses, making Pakistani exports more expensive in international markets and eroding competitiveness. Separately, Chairman of the Cereal Association of Pakistan (Cereal Association of Pakistan), Muzzammil Chappal, called for immediate relief through a reduction in the Petroleum Development Levy (PDL), noting that it accounts for a substantial portion of the current fuel price structure. He said petroleum prices remain a primary inflationary driver and stressed that lowering fuel costs would provide broad-based relief to consumers while easing pressure on the wider economy.