Fuel Price Hike Sparks Concern Among Business Leaders in Pakistan
KARACHI – July 17, 2025: Prominent voices from Pakistan’s business community have raised alarms over the recent increase in petroleum product prices, warning that the decision could have far-reaching consequences for the economy, industries, and everyday consumers.
⛽ New Fuel Prices Announced
The government has implemented the following fuel price adjustments:
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Petrol: Increased by Rs. 5.36, now priced at Rs. 272.15 per litre
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High-Speed Diesel (HSD): Increased by Rs. 11.37, now Rs. 284.35 per litre
🏭 Industry Leaders Warn of Rising Costs
Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), expressed concern that the fuel price hike will drive up production costs, undermine export competitiveness, and potentially lead to factory closures.
“Unless input costs are stabilized, Pakistani exporters will continue losing ground to regional players like India and Bangladesh,” Naqi stated.
“The burden of high electricity, gas, and fuel tariffs—along with excessive taxation—is making it nearly impossible for traders and manufacturers to survive.”
He called on the government to reconsider the price hike, warning that failing to do so could result in increased inflation, unemployment, and further economic strain.
🛣️ Impact on Daily Life and Transportation
Mian Zahid Hussain, Chairman of the Advisory Board at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), described the price hike as a “ticking time bomb” that could trigger another wave of inflation across the country.
“The biggest impact will be felt by lower and middle-income households, especially those who rely on motorcycles, rickshaws, and small vehicles,” he said.
“Diesel price increases will also push up costs in transportation, agriculture, and food distribution, adding pressure on both businesses and consumers.”
📊 Economic Ripple Effects
Higher fuel prices are expected to lead to:
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Increased transport fares
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Higher commodity prices
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Strained household budgets
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Reduced industrial output
Experts say the inflationary effects could persist in the coming months unless mitigating measures are introduced.
💬 Final Thoughts
As businesses and consumers brace for the ripple effects of the fuel price increase, industry leaders continue to urge the government to explore alternatives that could ease the economic burden while keeping inflation in check.
