The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has warned that the unprecedented surge in petroleum prices poses a serious threat to Pakistan’s economy. The organization is urging the government to immediately cancel the Rs. 161 per litre Petroleum Development Levy (PDL) to relieve the industrial sector.
Economic Impact of Fuel Hike
FPCCI President Atif Ikram Sheikh highlighted that petrol prices have soared by Rs. 137.23 to Rs. 458.40 per litre, a 42.7% increase, while high-speed diesel jumped Rs. 184.49 to Rs. 520.35, a 55% rise. Including the March 2026 increase, cumulative fuel prices have surged 77% in just one month.
Sheikh warned that passing such a steep increase onto consumers and businesses without consultation is unsustainable. Diesel’s dramatic rise threatens manufacturing, export competitiveness, and may push buyers to regional competitors.
Sector-Wise Consequences
FPCCI Senior Vice President Saquib Fayyaz Magoon explained the potential fallout:
- Textiles & Manufacturing: Soaring freight costs, factory closures, and production cuts
- Agriculture: Operations of tractors, tube wells, and harvesters could become financially unviable, risking food security
- SMEs: Immediate liquidity crises as operational costs double overnight
- Logistics & Supply Chains: Rising diesel prices will increase costs for essential goods, including food, medicine, and raw materials
Magoon also criticized government-targeted subsidies as historically inefficient and insufficient to protect the industrial sector from this economic shock.
FPCCI’s Call to Action
The FPCCI has requested emergency discussions with the Ministry of Finance and Ministry of Petroleum, warning that failure to act could result in mass bankruptcies, job losses, and socio-economic instability across the country.
