Karachi, March 7, 2026 – The S.I.T.E. Association of Industry (SAI) has called on the government to withdraw or significantly reduce duties and taxes on petroleum products to protect industries and consumers from the impact of rising fuel prices.
In a statement issued on Saturday, SAI President Abdul Rehman Fudda expressed serious concern over the sharp increase of up to Rs55 per litre in petroleum product prices, which was implemented with immediate effect. He warned that the move could further fuel inflation and place additional pressure on businesses and the public.
Fudda said the price surge comes amid ongoing geopolitical tensions between the United States and Iran, which have pushed international oil prices higher. In such an emergency situation, he urged the government to absorb the global price shock by cutting petroleum taxes, instead of passing the full burden on to consumers.
Rising Fuel Prices Threaten Industry
According to the SAI president, the increase in petroleum prices will have wide-ranging negative effects on Pakistan’s economy, particularly on industrial sectors.
Higher fuel costs are expected to raise transportation expenses, increase the cost of industrial inputs, and make raw material procurement more expensive. This could reduce the competitiveness of many industries, especially export-oriented sectors, which are already facing challenges in global markets.
He added that increased fuel prices inevitably push up the cost of essential goods, worsening the cost-of-living crisis and disproportionately affecting low-income households.
Call for Immediate Tax Relief on POL
Fudda also pointed out that consumers are already paying around Rs121 per litre on petrol and Rs118 per litre on diesel in the form of taxes and margins. He argued that the recent hike had been implemented despite the fact that existing fuel stocks were purchased at comparatively lower prices.
To reduce pressure on the national economy, the SAI president recommended that the government adopt energy conservation measures, including cutting fuel quotas for members of national and provincial assemblies and government officials by at least 50 percent.
He stressed that reducing taxes on petroleum products (POL) is essential to prevent further inflation, stabilize production costs, and provide relief to both industries and consumers during the ongoing economic challenges.