PBF for immediate cut in POL prices effective March 14

KARACHI: The Pakistan Business Forum (PBF) has urged the Government of Pakistan to announce an immediate reduction in petroleum product prices effective 14 March 2026, warning that persistently high fuel prices are severely affecting consumers, businesses, and industrial productivity across the country.

While speaking to the media, PBF President Khawaja Mehboob-ur-Rehman called on the Ministry of Finance of Pakistan to utilise allocations from the PKR 390 billion contingency fund already provided in the federal budget to offer targeted relief to the public and the business community.

He noted that the fund is scheduled to lapse on 30 June 2026 if it remains unused.

According to PBF, the current petroleum price structure has become increasingly difficult for both consumers and businesses to sustain. At present, Pakistani consumers are paying USD1.15 per litre for petrol.

The Forum suggested that the government should reduce the price to around USD1 per litre from 14 March to help ease inflationary pressures and lower transportation and production costs across the economy.

The Forum proposed that the government temporarily absorb up to Rs80 per litre through a subsidy financed from the contingency allocation. PBF estimates that the available funds could support such relief measures for nearly two months if implemented efficiently.

PBF also highlighted that Pakistan currently faces some of the highest petroleum prices and tax burdens in the region, which are significantly increasing operational costs for industry and undermining the competitiveness of the country’s manufacturing and export sectors.

The Forum noted growing concern within the business community that Pakistan’s industrial and export sectors are already under mounting pressure from rising fuel prices, high interest rates, and increasing freight costs. It warned that if immediate corrective measures are not taken, the country could face a deeper industrial slowdown and a worsening cost-of-living crisis.

Addressing potential concerns regarding the financial position of domestic refineries, PBF stated that under prevailing Brent Crude Oil market conditions, refineries are unlikely to face significant losses from a temporary price adjustment.

The Forum added that any necessary financial support for the sector could be accommodated through allocations within the Public Sector Development Programme (PSDP), if required.

The Forum also clarified that the petroleum levy is imposed directly on consumers rather than on refineries. Therefore, any reduction through subsidy or levy adjustment would directly benefit end users.

PBF President further urged the government to move beyond a narrow revenue-generation approach and instead prioritise economic stability, industrial continuity, and public relief.

He emphasised that strategically utilising the emergency contingency fund to reduce petroleum prices would help cushion the economy from further shocks and provide much-needed relief to citizens and businesses alike.

Copyright Business Recorder, 2026