BMP slams govt’s decision of daily fuel pricing mechanism

LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has strongly condemned the government’s decision to introduce a daily petroleum pricing mechanism, describing it as an anti-industry, anti-business and anti-public measure that will further fuel inflation, undermine business confidence and increase uncertainty across the economy.

Reacting to the government’s decision to revise petroleum prices on a daily basis in line with international market fluctuations, BMP Chairman and former FPCCI President Mian Anjum Nisar said the move demonstrates the government’s extraordinary efficiency only when it comes to transferring the burden of rising international prices directly onto consumers and businesses. He regretted that when global oil prices had declined significantly over the past several months, the government failed to provide meaningful relief to the people. Instead, it continued to impose additional levies, climate support charges and various taxes, depriving consumers and industry of the full benefit of lower international prices.

He observed that the government repeatedly justified retaining high petroleum prices by introducing new levies and duties in different forms, claiming fiscal constraints and IMF commitments. However, the moment international prices started increasing due to renewed geopolitical tensions, the authorities acted with unprecedented speed to pass on the entire burden to the public without allowing even a day’s cushion or absorbing any part of the increase through reductions in taxes or petroleum levies.

Mian Anjum Nisar said this approach clearly reflects the government’s priorities, where revenue collection takes precedence over public welfare, industrial competitiveness and economic stability. He questioned why the same urgency was never displayed when international prices declined; saying consumers and businesses were denied timely relief despite repeated demands from the private sector.

He said the introduction of daily price revisions would create serious uncertainty for industries, transporters, exporters, traders and ordinary consumers. Manufacturing businesses prepare production schedules, procurement plans and pricing strategies on the basis of predictable energy costs. Daily changes in fuel prices would make business planning extremely difficult, increase operational risks and ultimately discourage investment.

The BMP Chairman noted that petroleum products directly influence transportation costs, electricity generation, agricultural production, industrial operations and the prices of almost every essential commodity. Consequently, daily fluctuations would trigger frequent increases in freight charges, raw material costs and retail prices, creating continuous inflationary pressure throughout the economy.

He said exporters are already struggling with high electricity tariffs, expensive gas, elevated borrowing costs, heavy taxation and declining regional competitiveness. Instead of reducing the cost of doing business, the government has chosen another policy that will increase production costs and weaken Pakistan’s export potential at a time when regional competitors are offering greater stability and policy support to their industries.

Mian Anjum Nisar further stated that businesses require consistency, predictability and confidence to make investment decisions. Frequent changes in petroleum prices would make it nearly impossible for transport companies, logistics operators, manufacturers, retailers and service providers to estimate operating costs or enter into long-term contracts with confidence.

He also expressed concern that daily price changes could encourage panic buying, hoarding, market manipulation and administrative confusion unless an exceptionally transparent monitoring mechanism is established. He said the government should have taken all stakeholders, including chambers of commerce, trade bodies, transport associations, petroleum dealers and industrial representatives, into confidence before introducing such a far-reaching policy.

The BMP Chairman maintained that if the government genuinely wanted to protect the economy from international oil market volatility, it should have first reduced excessive taxation on petroleum products and created a price stabilization mechanism capable of absorbing temporary global shocks instead of transferring every increase directly to consumers. He added that governments across the world often provide temporary relief during extraordinary international crises to shield businesses and households from inflationary shocks, whereas Pakistan appears to have adopted the opposite approach.

Mian Anjum Nisar urged the government to immediately review the decision, suspend the daily pricing mechanism and initiate meaningful consultations with representatives of the business community before implementing any policy carrying such widespread economic consequences. He also called for a comprehensive review of petroleum taxation, climate support levies and other charges that have substantially increased fuel prices despite fluctuations in international markets.

He said Pakistan’s fragile economy cannot afford policies that further increase inflation, discourage investment and erode industrial competitiveness. Sustainable economic recovery, he added, requires stable policies, affordable energy, lower production costs and genuine facilitation of businesses rather than measures that continuously increase the financial burden on industry and the public.

The BMP Chairman reaffirmed that the Businessmen Panel would continue to raise its voice against policies that adversely affect trade, industry and the common citizen, while extending full support to reforms that genuinely promote economic growth, exports, investment and employment.

Copyright Business Recorder, 2026