FPCCI Warns High Fuel Prices Erode Export Competitiveness and Raise Business Costs
The Federation of Pakistan Chambers of Commerce and Industry says soaring diesel prices are inflating logistics, agricultural and manufacturing expenses, urging the government to cut fuel taxes and the Petroleum Development Levy.
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How This Affects the Exchange
Sector Effect
Negative · Do not buy
Higher diesel prices hurt Transport, Cement, Steel, Fertilizer and Textile sectors – avoid buying related stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- TransportNegatively affected
- CementNegatively affected
- SteelNegatively affected
- FertilizerNegatively affected
- TextileNegatively affected
Companies
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Sectors: Transport, Cement, Steel, Fertilizer, Textile — Negative · Do not buy. PSX tickers: OGDC, PPL, MARI, PSO, SNGP, ATRL. Higher diesel prices hurt Transport, Cement, Steel, Fertilizer and Textile sectors – avoid buying related stocks.
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Open on ProPakistani## FPCCI Calls for Realistic Fuel Pricing
The President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, told media on Monday that Pakistan’s current petroleum pricing regime is harming export competitiveness and pushing up operating costs for businesses across the economy.
## Diesel Prices as a Cost Driver
Sheikh highlighted high‑speed diesel (HSD) as a key burden, noting that lower diesel rates would immediately reduce logistics and transportation expenses, ease the cost of agricultural supply chains, and lower production costs for manufacturers. He argued that the current level of diesel pricing is unsustainable for small and medium‑sized enterprises as well as large industrial players.
## Taxation and Levy Issues
According to the FPCCI chief, global crude oil prices are only part of the problem. Domestic taxes, especially the Petroleum Development Levy (PDL), add a significant surcharge to fuel prices. He urged the federal government to review the PDL and other fuel‑related taxes to bring domestic diesel rates closer to international benchmarks.
## Potential Benefits of Diesel Relief
A reduction in diesel costs, Sheikh said, would lower the price of transporting goods, provide relief to producers and consumers, and help keep food prices in check by reducing the operating costs of tractors and tube‑well pumps used by farmers.
## Outlook for Businesses
The chamber warned that without a corrective policy shift, Pakistan’s ability to improve regional competitiveness and boost exports will remain constrained, as high fuel costs continue to erode profit margins across transport, agriculture and manufacturing sectors.