Unpredictable fuel pricing mechanism hurting industry: SAI

KARACHI: Abdul Rehman Fudda, President of the SITE Association of Industry Karachi, warned that Pakistan’s industrial sector and export economy were facing a mounting crisis as the government’s policy of revising petroleum prices every day or every other day drove up transportation costs, disrupted factory supplies and threatened the country’s competitiveness in international markets.

SAI chief said frequent fuel price revisions had created unprecedented uncertainty for businesses and were pushing the industrial supply chain towards paralysis.

He warned that soaring freight charges were disrupting the delivery of raw materials to factories, raising production costs and making it increasingly expensive to transport export consignments to ports.

“The government is exposing industry and exports to serious damage through an unpredictable fuel pricing mechanism,” Fudda said. “The consequences we warned about are now clearly visible.”

He urged the government to immediately withdraw the daily pricing policy, reduce taxes on petroleum products and review fuel prices at intervals of at least 15 days.

A stable and predictable pricing system, he said, was essential for production planning, procurement, shipment scheduling and the survival of export-oriented industries.

Abdul Rehman Fudda recalled that industrialists had warned the government when the policy was introduced that frequent price changes would severely affect factories, particularly export-oriented units. Instead of providing relief, he said, the policy had fueled inflation, increased operating expenses and weakened business confidence.

He criticized the government for failing to implement its understanding with transporters to extend the fuel price revision period to two weeks. Despite 10 days having passed, no practical action had been taken, he said.

SAI chief said the government had increased dealers’ margins, while oil marketing companies were also seeking higher margins.

He urged the government to prioritise broad-based relief by reducing taxes on petroleum products rather than extending benefits to specific sectors or groups, saying this would provide direct relief to industry, businesses and consumers alike.

Copyright Business Recorder, 2026