Shafiq Butt says maintaining POL prices despite lower global oil rates adds to business costs

LAHORE, JUN 28 /DNA/ – Ferozepur Road Industrial Association (FRIA) Acting Chairman Shafiq Butt has urged the government to pass on the benefit of declining international crude oil prices to consumers and businesses instead of maintaining domestic petrol and diesel prices while increasing the petroleum levy.

He said the latest decision has disappointed the industrial community, which was expecting a reduction in petroleum prices in line with the downward trend in global oil markets.

The FRIA acting chairman said international oil prices have softened in recent weeks, creating room for meaningful relief to transporters, industries, farmers and the general public. However, by keeping petrol and high-speed diesel prices unchanged and increasing the petroleum levy, the government has denied consumers the benefit of lower global prices.

Shafiq Butt said fuel prices have a direct bearing on the cost of production, transportation and distribution of goods across every sector of the economy. Any reduction in petroleum prices helps lower business costs, improves industrial competitiveness and eases inflationary pressures. Conversely, maintaining high fuel prices despite favourable international market conditions delays the expected reduction in the cost of doing business.

He said the decision comes at a time when manufacturers are already struggling with elevated energy costs, high financing rates, expensive raw materials and weak domestic demand. Industries require every possible cost advantage to remain competitive in both local and export markets.

The FRIA acting chairman observed that lower fuel prices would particularly benefit small and medium enterprises, transport operators and the agriculture sector, where diesel is a major input cost. Reduced transportation expenses would also help stabilise prices of essential commodities and improve purchasing power for consumers.

The business leader acknowledged the government’s fiscal challenges and revenue requirements but stressed that a balanced approach is necessary to protect economic activity. He said the petroleum levy remains an important source of government revenue, yet taxation measures should not undermine industrial growth and consumer confidence.

Shafiq Butt said businesses have consistently called for predictable and market-based energy pricing policies that support investment and economic expansion. He noted that when international oil prices decline, domestic consumers should receive a fair share of the benefit, which would strengthen confidence among investors and businesses.

He said lower fuel costs could provide timely support to exporters facing stiff competition in international markets. Reduced logistics and transportation expenses would improve the competitiveness of Pakistani products and contribute to higher export earnings.

The FRIA acting chairman urged the government to review its petroleum pricing policy and ensure that future reductions in international oil prices are reflected in domestic fuel prices. He said such a policy would help curb inflation, reduce production costs and provide much-needed relief to industries, traders and the public while supporting the broader objective of sustainable economic growth.