The Korangi Association of Trade and Industry (KATI) has expressed serious reservations over the government’s decision to revise petroleum product and energy prices on a daily basis, warning that the move would create uncertainty for industry, trade, transport, and consumers instead of strengthening economic stability.
KATI President Muhammad Ikram Rajput said that daily fluctuations in petroleum prices would make effective business planning virtually impossible for industrialists, traders, and investors. He noted that manufacturing operations, raw material procurement, production schedules, supply chains, sales, and export commitments are all based on predetermined cost estimates, and frequent changes in fuel prices would make accurate cost forecasting extremely difficult.
Rajput said the resulting uncertainty would disrupt production activities, weaken business confidence, and undermine industrial competitiveness. He also criticized the government for introducing the proposal without consulting the business and industrial community, warning that such a policy could have adverse consequences for the national economy.
He argued that a daily fuel pricing mechanism may be suitable for developed economies with stronger purchasing power and greater resilience to inflationary pressures. However, he said, in a developing country like Pakistan where inflation and poverty are directly linked to fuel prices, the policy could place an additional burden on businesses and consumers alike.
“Every new fuel price would mean new production costs, revised transport fares, and fresh pricing of goods on a daily basis,” Rajput said. “In such an uncertain environment, manufacturers will struggle to determine product prices, traders will find it difficult to manage inventories, and consumers will ultimately bear the cost through higher prices.”
The KATI president warned that small and medium-sized enterprises (SMEs) would face increased administrative and financial pressures, while the transport and logistics sectors would be among the hardest hit. He said freight charges for goods transport, container services, and the movement of raw materials and finished products would fluctuate daily, disrupting supply chains and eventually driving up the prices of essential commodities.
He further cautioned that Pakistan’s export sector could lose competitiveness because businesses would no longer be able to accurately estimate production costs while investor confidence could weaken, slowing the pace of new investment.
Rajput acknowledged that many countries adjust petroleum prices in line with global market trends but pointed out that they also adopt mechanisms designed to maintain market stability and avoid unnecessary uncertainty for businesses.
He urged Prime Minister, the Federal Minister for Petroleum, and the Federal Minister for Energy to reconsider the proposal, stressing that Pakistan’s economy requires policy consistency, stability, and predictability rather than daily uncertainty.
“The government should avoid decisions that increase business costs and fuel inflation,” he said, adding that any pricing mechanism should be introduced only after meaningful consultation with representatives of the industrial, commercial, and transport sectors to ensure it safeguards the interests of the economy, the business community, and the public alike.
