KARACHI: The Pakistan Business Forum (PBF) has called on the government to reduce petrol and diesel prices by at least Rs30 per litre in the upcoming fortnightly fuel price review, arguing that lower international crude oil prices provide room for broader relief to consumers and businesses.
PBF President Khawaja Mehboobur Rehman said on Wednesday that declining global oil prices should be reflected in domestic fuel prices instead of being offset through higher taxation, criticising the government’s recent increase in the petroleum development levy (PDL).
Benchmark US West Texas Intermediate crude is trading at about $72 per barrel, while UAE Murban crude remains in the low-to-mid $70 range, he said, adding that the softer price environment should translate into lower fuel costs for consumers and industry.
The business body also pointed to Saudi Aramco’s decision to cut the official selling price of its Arab Light crude for August shipments to Asia by $11 per barrel, describing it as the largest monthly reduction in more than two decades and a sign of easing market conditions.
“The government should ensure that the full benefit of declining international crude oil prices reaches the people,” Rehman said. “Artificially keeping petroleum prices high through additional levies will only prolong inflation, increase the cost of doing business and delay economic recovery.”
He said elevated fuel prices are raising production and transportation costs, disrupting industrial supply chains and undermining the competitiveness of local manufacturers and exporters. Exporters are already facing high electricity tariffs, expensive financing and rising input costs, he added.
Separately, PBF Chief Organiser Ahmad Jawad said the decision to raise the PDL despite a decline in global crude prices has increased pressure on industry and other productive sectors.
Jawad linked the issue to external sector challenges, noting that the country’s trade deficit widened to $39.46 billion in FY26, up 22 per cent from the previous year. Exports fell 6.0 per cent to $30.13 billion, while imports rose 8.1 per cent to $69.59 billion, according to figures cited by the business group.
He said high financing costs, expensive energy, heavy taxation and an uncompetitive business environment continued to weigh on export performance and industrial expansion.“At a time when exporters are struggling to compete in international markets, maintaining high petroleum prices through increased levies only adds to production and logistics costs, making Pakistani products less competitive,” Jawad said.
