The President of the United Business Group (UBG), Zubair Tufail, today called on the government to immediately abolish all taxes on petroleum products following a historic surge in fuel prices, which has seen petrol jump by Rs55 to a new high of Rs321.17 per litre.
The former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) expressed grave concern over the unprecedented increases, which include a Rs130.08 rise in the price of kerosene oil and an extraordinary Rs154 hike for jet fuel.
Mr Tufail highlighted that the substantial price revisions have triggered fears of a new wave of inflation, noting that the business community is demanding an immediate reduction in fuel costs to mitigate the economic shock.
He stated that Pakistan has now surpassed neighbouring countries, making its petrol the most expensive in the region. He pointed out that petrol is sold for the equivalent of Rs94 per litre in India, Rs293 in Sri Lanka, and 116 Taka in Bangladesh, in stark contrast to Pakistan”s new rate.
The UBG President pointed to the direct impact on low-income households, which widely use kerosene oil, and urged the government to temporarily scrap the petroleum levy of Rs20.36 per litre on kerosene and the Rs15.84 per litre levy on light diesel oil to provide relief to the public.
The effects of the price hike are already materialising, as Mr Tufail observed that transporters have announced fare increases, and goods transporters have declared a 20 per cent rise in freight charges, which is expected to drive up the cost of essential commodities.
In the aviation sector, the price of JP-1 jet fuel has soared by 82 per cent, from Rs188.93 to a record Rs342.37 per litre. He warned this sharp increase could lead to higher airline ticket fares.
Acknowledging that rising tensions between the United States and Iran have pushed global petroleum prices higher, Mr Tufail stressed that the government should not pass the entire burden onto the public. He insisted that the administration should instead reduce its taxes and absorb a portion of the financial impact itself.