Petroleum Prices Should Be Set Every 15 Days Instead of Daily Basis, KATI President.
✧ GENERATE BRIEFING +
Korangi Association of Trade and Industry (KATI) President Muhammad Ikram Rajput has strongly criticized the government’s shift toward determining petroleum product prices on a daily basis, warning that frequent adjustments will destabilize business planning and trigger widespread inflation. Highlighting that petrol prices have surged by approximately Rs22 and diesel by over Rs14 across a span of just three days, Rajput cautioned that unpredictable pricing prevents industrialists and traders from accurately projecting production costs and freight rates.With government taxes, duties, and levies currently accounting for roughly 37% of petrol prices and 31% of diesel prices, KATI urged authorities to review the existing tax structure instead of directly passing international market volatility onto consumers. Rajput noted that continuous price shifts disrupt the entire supply chain—affecting raw material procurement, container services, and export competitiveness—while disproportionately hurting small and medium-sized enterprises (SMEs).
Korangi Association of Trade and Industry (KATI) President Muhammad Ikram Rajput has expressed serious concerns over the government’s decision to determine petroleum product prices on a daily basis, warning that the move could create significant difficulties for industry, trade, transport and the general public and increase economic uncertainty rather than promoting stability.
Muhammad Ikram Rajput said petrol prices had increased by approximately Rs22 while diesel prices had risen by more than Rs14 over the past three days, placing an additional burden on inflation-hit consumers. He said that if fuel prices were changed on a daily basis, industrialists and traders would be unable to accurately determine production costs and product prices, severely affecting business planning.
He said government data showed that taxes, duties and levies accounted for approximately 37 percent of the price of petrol and 31 percent of the price of diesel. Instead of directly passing the impact of fluctuations in international petroleum prices on consumers and industry, the government should also review the existing system of taxes and levies, he added.
The KATI president said every daily change in fuel prices would translate into new transportation costs, revised freight rates and higher product prices. Rising costs of goods transportation, container services, raw materials and delivery of finished products would affect the entire supply chain, ultimately pushing up prices across all sectors, including essential commodities.
He said frequent changes in fuel prices would also undermine the competitiveness of export-oriented industries because accurately estimating production costs would become increasingly difficult, while investor confidence could also be weakened. Small and medium-sized enterprises would be among the sectors most severely affected by the situation, he added.
Muhammad Ikram Rajput said any decline in petroleum product prices in the international market should also be passed on immediately to consumers, industry and transporters. “It is not acceptable for increases to be passed on immediately while reductions are delayed,” he said.
He called upon the Prime Minister, the Federal Minister for Petroleum and the Oil and Gas Regulatory Authority (OGRA) to reconsider the decision to determine petroleum prices on a daily basis and, after consultation with the industrial, commercial and transport sectors, introduce a transparent and predictable pricing mechanism that could protect business costs, consumers and the national economy from unnecessary fluctuations.
The KATI president said Pakistan’s economy needed policy continuity, economic stability and business confidence rather than prices that changed every day.
