The Pakistan Business Forum has written to Prime Minister Shehbaz Sharif demanding an immediate review of the daily petroleum pricing mechanism, warning that recent hikes have burdened businesses and the public alike.
Islamabad, Pakistan – Web Desk: The Pakistan Business Forum has written to Prime Minister Shehbaz Sharif, demanding an immediate review of the mechanism used to determine daily petroleum prices, warning that the current formula has placed both the business community and the general public under mounting pressure.
According to the letter, the existing pricing formula has created stagnation across businesses and among consumers, with the forum stating that the same mechanism has also led to arbitrary pricing of everyday goods and essential items unrelated to fuel itself.
The forum noted that petrol prices rose by Rs24 per litre and diesel by Rs60 per litre over the past five days alone. It stated that in difficult economic conditions, the government’s role is to provide relief to citizens rather than transfer the entire burden onto the public.
In the letter, addressed directly to the prime minister, the forum stated that while the economy needs support, the government’s current approach does not reflect that intent. It called for the petroleum levy to be fixed at a rate equal to 18 percent GST per litre.
The Pakistan Business Forum also strongly opposed any increase in the margins allowed to petroleum dealers, and demanded a reduction in the per-litre margin currently retained by oil marketing companies.
The latest increase came a day earlier, when the government raised the petrol price by Rs3.66 per litre, taking it to Rs335.18 per litre. The price of diesel was also increased by Rs4.80 per litre, bringing it to Rs383.46 per litre.
With fuel prices continuing to climb under the daily pricing mechanism, business groups are expected to keep pressing the government for structural changes to the formula, as consumers and traders alike grapple with the cumulative impact of frequent price revisions.
