KARACHI: The Pakistan Business Forum (PBF) has written to Prime Minister Mian Muhammad Shehbaz Sharif, urging his immediate intervention to withdraw the recently introduced daily petroleum pricing mechanism, warning that the policy is creating uncertainty for businesses, disrupting economic planning, and placing an unbearable burden on consumers.
In a letter addressed to the Prime Minister, PBF President Khawaja Mehboob Ur Rehman stated that the daily fuel pricing mechanism has left both the business community and the general public in a state of uncertainty. He said the absence of price stability has made it increasingly difficult for industries, traders, transporters, exporters, manufacturers, and retailers to determine production costs, prepare quotations, honour contracts, and effectively plan their commercial activities.
He further observed that daily fluctuations in petroleum prices have encouraged arbitrary increases in the prices of essential commodities, as retailers and transporters are passing anticipated cost increases on to consumers without any effective monitoring.
The Forum pointed out that within just five days, petrol prices have increased by Rs. 24 per litre, while high-speed diesel has risen by Rs. 60 per litre, placing significant additional financial pressure on households, businesses, the transport sector, agriculture, and the overall economy.
Rehman emphasised that during difficult economic circumstances, the government’s responsibility is to provide relief to the public rather than transferring the entire burden of international oil price fluctuations on to consumers.
He said Pakistan’s economy urgently requires confidence, stability, and policy consistency, but the current pricing mechanism is creating uncertainty instead of supporting economic recovery.
Frequent changes in petroleum prices have made business planning increasingly difficult, discouraged investment, and weakened the competitiveness of Pakistani industries in both domestic and international markets.
“Prime Minister, your intervention has now become imperative. We urge you to stand with the people and the business community by withdrawing the daily petroleum pricing mechanism and restoring a predictable, transparent, and stable fuel pricing framework,” he stated.
PBF also recommended that the petroleum levy be rationalised by fixing it at a level equivalent to an 18 percent General Sales Tax (GST) instead of allowing unpredictable increases. Such a mechanism, letter said, would provide greater transparency while protecting consumers from sudden price shocks.
The Forum further urged the government to review and reduce the per-litre margins of Oil Marketing Companies (OMCs) as part of broader efforts to provide meaningful relief to consumers.
At the same time, PBF reiterated its strong opposition to any increase in the margins of petroleum dealers, noting that dealers are already receiving more than Rs. 8 per litre, which it considers sufficient under the prevailing economic conditions.
Khawaja Mehboob also cautioned that if the Ministry of Petroleum intends to move any summary seeking an increase in dealers’ margins or other petroleum-related charges, the government should ensure that the additional financial burden is not passed on to the public.
The Forum reiterated that while fluctuations in international oil prices are inevitable, it is neither appropriate nor sustainable to pass every external shock directly on to consumers. It urged the government to absorb part of the volatility, wherever fiscally feasible, to protect economic activity, support businesses, and shield ordinary citizens from abrupt price increases.
According to PBF, economic stability is built on predictability, consistency, and investor confidence—not on policies that create uncertainty on a daily basis.
The Forum expressed confidence that Prime Minister Sharif would give due consideration to the concerns of the business community and take timely measures to restore confidence, ensure policy stability, protect consumers from unnecessary economic hardship, and support sustainable economic growth.
Copyright Business Recorder, 2026
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