POL price hike to push up cost of production manifold: traders

KARACHI: Businessmen and industrialists criticized the government for the soaring prices of petrol and diesel in an unexpected move, terming it a destructive step toward business growth. They pointed out that the fresh hike in petroleum product prices will substantially increase logistics expenses, ultimately raising the cost of doing business and living in the country. Recently, the government announced an increase of Rs. 26. 77 per litre in the price of diesel and Rs. 26. 77 per litre in petrol. Following the approval, the price of diesel will now be Rs. 380. 19 per litre and petrol Rs. 393. 35 per litre. READ ALSO: Pakistan govt hikes petrol, diesel prices by Rs26. 77 per litre Senior Vice President of the Federation of Pakistan Chambers of Commerce & Industry and Chairman Businessman Panel Progressive (BMPP) Saquib Fayyaz Magoon, said the government’s decision to hike petroleum product prices will increase the Cost of products and make exports uncompetitive in the global market. He pointed out that the government has also reduced working hours as an austerity measure, which has already slowed down the economic cycle. He urged the government to reduce petroleum prices by cutting the burden of taxes and duties on them. Chairman of the Pakistan China Business Council and Member Supreme Council BMPP, Shabbir Mansha Churra said that the government should utilize diplomatic and strategic ties with Qatar and Saudi Arabia to import low-cost crude oil and petroleum products into Pakistan to provide relief to the masses. He also urged the government to continue peace building efforts as a mediator between Iran and the United States, and to help prevent global economic fallout from potential conflict. He said the current hike in petroleum products will directly increase the cost of production and make the Pakistani products more expensive in the world market. Muzzammil Chappal, Chairman of the Cereal Association of Pakistan (CAP), has urged the government to reduce petroleum prices by lowering the Petroleum Development Levy (PDL), noting that it accounts for a significant portion of the current price buildup. He said petroleum prices are a key driver of inflation, and emphasized that cutting fuel costs is essential to provide meaningful relief to the public. He added that a reduction in domestic petroleum prices would offer substantial relief to the masses and help ease overall economic pressure. Copyright Business Recorder, 2026

Read full story on Business Recorder