The Vice President of the Federation of Pakistan Chambers of Commerce and Industry FPCCI, Amaan Paracha, has strongly criticised the federal government’s decision to raise the petroleum levy on petrol and diesel, arguing that consumers are being denied relief despite a decline in global oil prices.
Paracha said that while international oil prices have eased, the government has chosen not to pass on the full benefit to the domestic market. Instead, he added, higher taxes on petroleum products are increasing financial pressure on the public, which is already struggling with persistent inflation.
According to Paracha, the petroleum levy on petrol has been increased by Rs 4.65 per litre, taking it from Rs 79.62 to Rs 84.27 per litre. He further stated that the levy on high speed diesel has also been raised by 80 paisa per litre, from Rs 75.41 to Rs 76.21 per litre. He pointed out that if the levy had remained unchanged, petrol prices could have fallen by approximately Rs 4.50 per litre.
He urged the government to reflect the reduction in global oil prices in local fuel rates, saying this would help contain inflation and reduce the cost of doing business across the country.
Paracha also said that Pakistan imposes some of the highest taxes on petroleum products globally, yet the revenue generated does not translate into visible improvements in public welfare or development.
He noted that both consumers and the business community continue to shoulder a heavy tax burden, while the government frequently cites weak tax collection. At the same time, he said, corruption remains widespread and development activity continues at a slow pace.
Referring to international practices, Paracha said that in most countries, reductions in global oil prices are promptly passed on to consumers. In contrast, he added, any increase in international oil prices is quickly reflected in domestic rates, while price declines are absorbed through higher levies, depriving the public of relief.
