He said that petrol prices placing an additional burden on businesses, industries and the common man. The latest increase has come at a time when businesses are already facing high energy costs, heavy taxation and rising operational expenses.
Faheem Ur Rehman Saigol said that the government should immediately review the petroleum levy and other taxes and duties being charged on petroleum products. He pointed out that taxes and duties on petrol is a significant burden for consumers and businesses.
He said that while international oil prices and geopolitical developments are beyond Pakistan’s control, the government has the policy space to provide relief by reducing the petroleum levy and other components within its control. “At a time when the economy needs lower production costs, imposing such a heavy burden through petroleum taxation is counterproductive,” he said.
The LCCI President said that high fuel prices directly increase freight and transportation costs and consequently raise the cost of raw materials, manufacturing, agriculture, logistics and distribution. This ultimately affects the competitiveness of Pakistani products in both domestic and international markets.
He urged the government to formulate a mechanism under which the impact of international oil price fluctuations could be absorbed to some extent through adjustment in petroleum levy and other taxes, instead of passing the entire burden on to consumers.
Faheem Ur Rehman Saigol said that reducing fuel prices would provide immediate relief to industry and the general public, help contain inflationary pressures and support economic activity. He stressed that the government should treat affordable energy and fuel as an essential requirement for economic growth and industrial competitiveness.
He also urged the government to expedite consultations on reducing the petroleum levy and ensure that any relief agreed upon translates into a meaningful reduction in the cost of fuel for consumers and businesses.
