ISLAMABAD – Pakistan’s daily petroleum pricing mechanism comes under fresh scrutiny, in a double whammy for the government. Amid outrage from public, Pakistan Business Forum (PBF) also urged Prime Minister Shehbaz Sharif to overhaul the existing formula, warning that it is hurting the economy, businesses, and consumers alike.
In a letter addressed to the Prime Minister Shehbaz Sharif, PBF President Khawaja Mehboob ur Rehman called for immediate review of the policy under which petroleum product prices are revised on a daily basis. He argued that the current mechanism has created uncertainty in the market, slowed economic activity, and placed an additional burden on both the business community and the public.
The business body proposed several key changes to ease pressure on fuel prices. It recommended capping the petroleum levy at a level equivalent to 18% GST per litre and reducing the per-litre margins of oil marketing companies (OMCs) to help bring greater stability to fuel prices.
According to letter, the existing pricing formula pushed businesses and consumers into economic stagnation, making it increasingly difficult for commercial activity to recover. The forum stressed that during challenging economic conditions, the government’s priority should be providing relief rather than policies that further increase financial pressure.
PBF urged PM Shehbaz Sharif to personally intervene and revise the petroleum pricing mechanism, saying such a move would support businesses, restore market confidence, and provide much-needed relief to the public.
The appeal comes after the federal government adopted a daily petroleum price adjustment mechanism, a policy approved during the June 17 cabinet meeting, replacing the previous pricing schedule with more frequent revisions.
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