PCDMA says Rs55 fuel price hike hurting trade, raising business costs

The Pakistan Chemicals and Dyes Merchants Association has warned that the recent Rs55 per litre increase in petroleum product prices has started hurting economic activity, raising business costs to unsustainable levels and slowing trade across the country.

PCDMA Chairman Salim Valimuhammad said the sharp increase in petrol and diesel prices had placed an extraordinary financial burden on traders, particularly importers and exporters, making it increasingly difficult for them to continue production and business operations.

He called on Prime Minister Shehbaz Sharif, Petroleum Minister Ali Pervez Malik and Commerce Minister Jam Kamal to take immediate steps to contain the economic impact of the fuel price increase.

Valimuhammad said the latest rise in petroleum prices had come on top of already high electricity costs and increasing raw material prices, creating fresh pressure on industry and trade.

He said that if the government was serious about promoting industrial and commercial growth, it should focus on lowering energy costs rather than adding to the burden on businesses.

The PCDMA chief also expressed concern over the recently announced Rs4 per unit reduction in electricity tariffs, saying the relief could prove temporary if it is later offset through fuel adjustment charges.

He warned that if electricity and fuel prices continued to rise, the impact would be felt directly by both imports and exports, further reducing the competitiveness of Pakistani products in international markets.

If the current situation persists, he said, the country could face faster inflation, a higher import bill and a further decline in exports, weakening the broader economy.

He said the government must urgently realign its economic priorities by ensuring stability in energy prices, reducing the cost of doing business and extending meaningful support to the trading and industrial community.

Otherwise, he warned, claims of economic recovery would remain rhetoric.