Islamabad: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has sharply criticized the government’s recent increase in petroleum levies, warning that it is placing further financial strain on consumers and businesses already grappling with high inflation.
Vice President Amaan Paracha highlighted that while global oil prices have declined, the benefit has not been passed on to domestic consumers. Instead, the government has increased the petroleum levy, worsening the economic burden on the public.
Paracha revealed that the levy on petrol was raised by Rs 4.65 per litre, from Rs 79.62 to Rs 84.27, while diesel saw an increase of 80 paisa per litre, from Rs 75.41 to Rs 76.21. He emphasized that had the levy remained unchanged, petrol prices could have fallen by approximately Rs 4.50 per litre, providing much-needed relief to consumers and businesses.
The FPCCI official criticized Pakistan’s high taxation on petroleum products, noting that despite heavy taxes, the benefits are rarely transferred to public welfare or development projects. Meanwhile, the government continues to face complaints about low tax collection amid widespread corruption and sluggish economic growth.
Paracha also pointed out the global practice of passing on lower oil prices to consumers, contrasting it with Pakistan’s policy of keeping domestic fuel prices unchanged or increasing taxes even when international prices drop. He urged the government to adjust petroleum levies fairly and transfer the benefits of falling global oil prices to the domestic market to reduce inflation and ease the cost of doing business.
This move by the government has sparked concerns across the business community and the general public, who fear further economic strain if fuel levies remain high.