KARACHI: The Salt Manufacturers Association of Pakistan (SMAP) has strongly opposed the government’s proposal to introduce daily petroleum price revisions, warning that the move would significantly increase business uncertainty, raise production costs, and place additional pressure on an already struggling industrial sector.
In a statement, SMAP Patron-in-Chief Ismail Suttar urged Prime Minister Shehbaz Sharif to review the proposed policy, arguing that daily fluctuations in fuel prices would adversely affect industry, trade, and the broader economy.
Suttar said manufacturers are already grappling with soaring electricity and gas tariffs, high taxation, and rising operational costs. Introducing daily adjustments in petroleum prices, he added, would further complicate business operations and make production planning increasingly difficult.
“The government says it wants to promote business, industry, and investment, yet policies such as daily fuel price revisions create new challenges for manufacturers,” he said.
He cautioned that continued increases in production costs could force businesses to scale back or suspend operations, ultimately reducing economic activity and weakening government tax revenues.
According to SMAP, daily fuel price changes would also fuel inflation by increasing transportation and logistics costs, which would eventually be passed on to consumers. Suttar stressed that policymakers should focus on creating a stable business environment that supports industrial growth, encourages investment, and generates employment rather than introducing measures that add to economic uncertainty.
Highlighting the challenges faced by the salt industry, he noted that salt is a low-value, high-volume commodity, making transportation costs a major component of overall production expenses. Frequent changes in fuel prices, he said, would make it difficult for manufacturers and traders to plan shipments, determine product prices, and maintain stable supply chains.
SMAP has urged the government to retain a weekly petroleum pricing mechanism instead of implementing daily revisions, saying it would provide greater predictability for businesses while still allowing the government to respond to changes in international oil markets.
