LCCI President Faheem Ur Rehman Saigol warned that any disruption in fuel supplies would not only affect transportation and logistics but would also have far-reaching consequences for trade, industry, agriculture and overall economic activity across the country.
He said petroleum products are the backbone of economic activity and any interruption in the supply chain would create serious challenges for businesses already facing multiple economic pressures.
Saigol stressed that the government should resolve the issue through dialogue and consensus to ensure the uninterrupted continuation of economic activity.
He said the planned nationwide strike by thousands of petroleum outlets should be treated as a matter of urgent concern, adding that when a major stakeholder in the petroleum supply chain raises reservations over a policy decision, those concerns should be addressed through institutional consultation.
According to the LCCI president, sustainable policymaking is only possible when all affected stakeholders are taken into confidence before major reforms are implemented.
Expressing concern over the government s proposed daily petroleum pricing mechanism, Saigol said the business community fears the policy would create uncertainty for manufacturers, traders, exporters, transporters and retailers.
He said fuel prices directly affect transportation costs, production expenses, freight charges, distribution networks and retail pricing, making frequent price changes difficult for businesses to calculate costs, prepare budgets and make commercial decisions.
"Businesses need predictability to operate efficiently. Manufacturers, traders, exporters, transporters and retailers prepare their costing and pricing structures based on known input costs. Under a daily pricing system, businesses would remain uncertain about fuel prices from one day to the next, making it extremely difficult to plan operations and determine actual costs," he said.
Saigol added that while aligning domestic fuel prices with international markets and improving transparency are important objectives, these goals should be balanced with the practical realities faced by businesses.
He argued that if Pakistan maintains petroleum reserves sufficient for around 28 days, there is a strong case for adopting a pricing mechanism that offers stability over a similar period.
Such a system, he said, would allow businesses to plan operations, manage inventories more effectively and avoid unnecessary market volatility.
The LCCI president noted that the business community is already struggling with persistent inflation, rising utility tariffs, higher taxation, elevated financing costs and declining consumer purchasing power.
He said many sectors are finding it increasingly difficult to maintain profitability, while commercial activity has slowed considerably in recent months due to challenging economic conditions and reduced business hours.
Saigol emphasised that petroleum pricing affects the entire economy, as changes in fuel prices directly influence transportation costs, agricultural inputs, production expenses, consumer prices and inflation.
He urged the government to consult petroleum dealers, chambers of commerce, trade bodies, transporters and industrial representatives before finalising any changes to the petroleum pricing mechanism.
