KARACHI: A leading Pakistani business group on Wednesday urged the government to cut petrol and diesel prices by at least Rs30 per liter in its weekly fuel price review due on Friday, saying a sustained decline in global crude oil prices had created room to pass on meaningful relief to consumers and businesses.
Pakistan Business Forum (PBF), which represents businesses across the country, said the government should review the Petroleum Development Levy (PDL) and allow lower international oil prices to be reflected in domestic fuel rates instead of offsetting the decline through higher taxation.
Pakistan traditionally revised petroleum prices every two weeks in line with global oil prices and exchange rate movements but shifted to weekly reviews during the US-Iran conflict as heightened geopolitical tensions increased volatility in international energy markets.
“The government should ensure that the full benefit of declining international crude oil prices reaches the people,” PBF President Khawaja Mehboob ur Rehman said in a statement. “Artificially keeping petroleum prices high through additional levies will only prolong inflation, increase the cost of doing business and delay economic recovery.”
The forum said benchmark US West Texas Intermediate crude was trading at around $69 per barrel, Brent crude at around $72 per barrel and UAE Murban crude had also eased in line with global market trends, arguing the decline should result in a substantial reduction in domestic fuel prices.
It also noted that Saudi Aramco had reduced the official selling price of its flagship Arab Light crude for August deliveries to Asia by $11 per barrel, describing it as the largest monthly cut in more than two decades.
The PBF said maintaining elevated petroleum prices was increasing transport and logistics costs, raising production expenses for manufacturers and exporters and weakening Pakistan’s competitiveness in international markets.
Its chief organizer, Ahmad Jawad, said Pakistan’s trade deficit widened to $39.46 billion in fiscal year 2025-26, up 22 percent from the previous year, while exports fell 6 percent to $30.13 billion and imports rose 8.1 percent to $69.59 billion.
“At a time when exporters are struggling to compete in international markets, maintaining high petroleum prices through increased levies only adds to production and logistics costs, making Pakistani products less competitive,” he added.
The forum urged Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to “announce a minimum reduction of Rs30 per liter in petroleum prices on Friday” to ensure the benefits of lower global oil prices are passed on to industries, exporters, transporters, farmers and consumers.
