High Fuel Prices Bad for Business: FPCCI

Pakistan's high petroleum rates are hurting export competitiveness and driving up business costs, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh stated on Monday.

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• According to Sheikh, Pakistan cannot improve its regional competitiveness or significantly growth exports while fuel costs remain high.
• Lower diesel costs would additionally reduce expenses for farmers using tractors and tube wells, he went on, potentially helping contain food rates.
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Sheikh pressed the federal administration to take a more realistic approach to fuel pricing, particularly high-speed diesel (HSD), arguing that lower diesel rates could reduce costs throughout transport, agriculture and manufacturing.

He remarked expensive diesel was increasing logistics and transportation costs and adding to the cost of agricultural supply chains, putting further pressure on businesses and consumers. Pakistan Scores Major Victory in Indus Water Treaty Case Against India.

According to Sheikh, Pakistan cannot improve its regional competitiveness or significantly growth exports while fuel costs remain high. He pressed a review of the Petroleum Development Levy (PDL) and other taxes that contribute to domestic fuel costs.

While taxes and the PDL had additionally climbed the burden on businesses, particularly small and medium-sized enterprises and sizeable manufacturers, sheikh remarked global crude oil costs were only one factor behind fuel costs.

He remarked reducing diesel costs would lower the cost of transporting goods and could provide relief to producers and consumers.

Lower diesel costs would additionally reduce expenses for farmers using tractors and tube wells, he went on, potentially helping contain food rates. Stay Connected with ProPakistani.

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Taken together, the developments around high Fuel Prices Bad for Business: FPCCI point to a situation that is still moving, and the coming days should bring more clarity.