KARACHI: Amid praise from oil industry stakeholders for the proposed daily fuel price mechanism, business circles have expressed serious reservations over the move, fearing that it could trigger a fresh crisis for industry and exports.

SITE Association of Industry President Abdul Rehman Fudda urged Prime Minister Shehbaz Sharif to immediately review and withdraw the policy, saying the country’s manufacturing sector was already under immense pressure due to high electricity and gas tariffs, excessive taxation and steadily rising production costs.

He said introducing daily revisions in petroleum prices would further deepen uncertainty for businesses, making long-term planning and cost management increasingly difficult.

With industries already struggling under high energy costs and policy uncertainty, he said export-oriented manufacturers were particularly vulnerable because export contracts were typically finalised several months before delivery.

“Continuous fluctuations in fuel prices during the production cycle would increase manufacturing and logistics costs, making it difficult for Pakistani exporters to remain competitive in international markets,” he added.

He further said local manufacturers could not revise product prices on a daily basis to absorb rising input costs, urging the government to retain monthly petroleum price revisions to provide businesses with a predictable operating environment.

Salt Manufacturers Association of Pakistan Founder Chairman Ismail Suttar said that the government adopt a weekly petroleum pricing mechanism.

The Oil Companies Advisory Council (OCAC) said daily pricing would enhance market transparency and improve supply chain predictability.

According to a press release, Petroleum Minister Ali Pervaiz Malik met a delegation of the Pakistan Petroleum Dealers Association and discussed petroleum pricing reforms, deregulation and issues concerning petroleum dealers.

The PPDA delegation appreciated the government’s management of petroleum product supplies during the challenges arising from the Strait of Hormuz crisis.

Published in Dawn, July 21st, 2026