Reduction in petroleum levy demanded

Lahore Chamber of Commerce & Industry President Faheem Ur Rehman Saigol has expressed serious concern over the continuous increase in petroleum prices, saying that expensive fuel is adding to the cost of doing business, increasing transportation costs and putting further pressure on inflation.

He said that petrol prices were placing an additional burden on businesses, industries and the common man. The latest increase has come at a time when businesses are already facing high energy costs, heavy taxation and rising operational expenses.

In a statement issued on Saturday, Saigol stressed that the government should immediately review the petroleum levy and other taxes and duties being charged on petroleum products. He pointed out that taxes and duties on petrol were a significant burden on consumers and businesses.

He said that while international oil prices and geopolitical developments were beyond Pakistan's control, the government had the policy space to provide relief by reducing the petroleum levy and other components within its control. "At a time when the economy needs lower production costs, imposing such a heavy burden through petroleum taxation is counterproductive," he said. High fuel prices directly increase freight and transportation costs and consequently raise the cost of raw materials, manufacturing, agriculture, logistics and distribution. This ultimately affects the competitiveness of Pakistani products in both domestic and international markets.

The LCCI president urged the government to formulate a mechanism under which the impact of international oil price fluctuations could be absorbed to some extent through adjustment in petroleum levy and other taxes, instead of passing the entire burden on to consumers. Saigol observed that reduction in fuel prices would provide immediate relief to the industry and the general public, help contain inflationary pressures and support economic activity. He called on the government to treat affordable energy and fuel as an essential requirement for economic growth and industrial competitiveness.