Daily oil revisions to hurt industry

Industrialists demand immediate price policy review

KARACHI:

The Salt Manufacturers Association of Pakistan (SMAP) has termed the government's decision to introduce daily pricing of petroleum products highly detrimental to industry, trade and the overall economy, urging Prime Minister Shehbaz Sharif to immediately review the policy.

SMAP Patron-in-Chief Ismail Suttar warned that industrial production costs had already become unsustainable due to high electricity and gas tariffs, coupled with heavy taxation. If petroleum prices were revised daily, he said, business activities would be severely disrupted and operating industries would become nearly impossible.

"On one hand, the government claims it wants to promote business, industry and investment, while on the other, it is making decisions that create new challenges for the industrial sector," he said.

Suttar cautioned that if businesses and industries shut down, the government would also struggle to collect taxes and generate revenue, as Pakistan's economy depended heavily on industrial and commercial activity.

He said daily fluctuations in petroleum prices would not only burden manufacturers but also trigger a fresh wave of inflation for ordinary citizens, who were already under severe economic pressure. The government, he stressed, should avoid policies that placed additional strain on the economy, industry and people and instead create an environment where industries could operate smoothly and generate employment.

Referring to the salt industry, Suttar explained that salt was a low-value but heavyweight commodity, where transportation costs were a significant component of production expenses. If fuel prices change every day, frequent fluctuations in transport costs will disrupt business planning and make it extremely difficult for traders to set prices and maintain stable supply chains.

He proposed that the government revise petroleum prices on a weekly basis.