The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has welcomed the federal government’s recent decision to slash high-speed diesel (HSD) and petrol prices. On Friday night, Prime Minister Shehbaz Sharif had announced reduction of Rs135 per litre in diesel and Rs12 per litre in petrol prices.
With the announcement, diesel will now cost Rs385 per litre, and petrol Rs366 per litre. President of FPCCI Atif Ikram Sheikh said that the apex trade body termed this steep reduction “a much-needed breather for trade, industry and the general public alike”.
The chief also commended that the reduction in petrol prices will provide supplementary relief across the supply chain.
“However, FPCCI advocates further temporary reduction or suspension of Petroleum Development Levy (PDL) on petrol price until the regional oil markets stabilize,” he said. Sheikh appreciated the government’s move, highlighting its positive ripple effect on the macroeconomy and the survival of Pakistan’s export-oriented sectors.
“Diesel is the backbone of our economy; directly fueling our transport; agriculture and manufacturing sectors,” he added.
Sheikh explained that the relief will significantly reduce the exorbitant cost of doing business – potentially lowering production overheads by 5 – 10% for key industries and “making our exports more competitive in the international market”. He urged the government to maintain this momentum and cascade further global oil price benefits to the domestic industry as soon as possible.
Moreover, SVP FPCCI Saquib Fayyaz Magoon, pointed out the immediate financial relief it provides to Small and Medium Enterprises (SMEs) – and the national logistics infrastructure as a whole. “Bringing diesel down to Rs 385.54 per litre shall force a necessary correction in the transportation costs of raw materials and finished goods,” he added. Similarly, Abdul Mohamin Khan, VP & Regional Chairman Sindh, emphasised the specific benefits for the province’s economic landscape – particularly for the agriculture and heavy local manufacturing sectors.
“Sindh is a major hub of Pakistan for both industrial output and agricultural yields.
The previous fuel shock made crop sowing increasingly unviable and threatened massive losses ahead of the harvest season,” he said. He added that the reduction shall lower the operational costs for our farmers utilising diesel-powered tractors and irrigation pumps, as well as for industries relying on heavy logistics originating from the ports of Karachi.