SITE Association warns that frequent petroleum price revisions could disrupt industrial planning, exports, and business competitiveness.
Pakistan’s industrial sector has voiced strong concerns over the federal government’s decision to implement a daily fuel pricing mechanism, with business leaders warning that the move could create significant challenges for manufacturers and exporters already struggling with rising operational costs.
President of the SITE Association of Industry (SAI), Abdul Rehman Fudda, has urged Prime Minister Shehbaz Sharif to immediately review and withdraw the daily petroleum pricing policy.
He cautioned that the initiative could further destabilize the industrial landscape at a time when businesses are facing mounting pressure from expensive energy, high taxation, and escalating production expenses.
According to Fudda, the manufacturing sector requires a stable and predictable business environment to effectively manage costs, plan investments, and maintain competitiveness.
He stressed that frequent changes in fuel prices would increase uncertainty and make it difficult for industries to accurately estimate production and transportation expenses.
“The industrial sector is already grappling with two major issues—high energy costs and policy instability,” he stated. “Daily fluctuations in petroleum prices will create additional uncertainty, making it harder for businesses to determine product pricing, manage inventories, and make strategic decisions.”
Fudda highlighted that export-oriented industries could be among the most affected by the policy. He explained that export contracts are often negotiated months in advance, with pricing agreed upon before production begins.
Any substantial increase in fuel costs during the manufacturing cycle could raise production and logistics expenses, reducing the competitiveness of Pakistani products in global markets.
He also pointed out that local manufacturers face limitations in adjusting product prices on a daily basis. As input costs fluctuate, businesses may be forced to absorb additional expenses, which could negatively impact profitability and discourage future investment.
The SAI president proposed that petroleum prices should be revised on a monthly basis rather than daily, allowing industries to operate with greater certainty.
He suggested that if global oil market volatility places pressure on government revenues, authorities could temporarily adjust the petroleum levy instead of transferring daily price fluctuations directly to consumers and businesses.
Fudda expressed optimism that Prime Minister Shehbaz Sharif and economic policymakers would carefully consider the concerns of the business community and adopt a more predictable fuel pricing framework to support industrial growth, protect exports, and preserve employment opportunities across Pakistan.