Fuel price hike sparks backlash from dealers, lawyers

ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) and the Supreme Court Bar Association (SCBA) have criticised the government over the latest increase in fuel prices and the level of petroleum levies, saying the move has added to public hardship and hurt fuel retailers.

Under an official notification that took effect on May 9, the government imposed a petroleum levy of Rs117.41 per litre on petrol and Rs42.60 per litre on high-speed diesel sold through retail outlets. The levy on premium fuel grades, including 97 RON and 95 RON petrol, or the high-octane blending component (HOBC), was set at more than Rs305.37 per litre.

The government is also charging a petroleum levy of Rs20.36 per litre on kerosene, Rs15.84 per litre on light diesel oil, and Rs77 per litre on furnace oil, which is equivalent to Rs82,077 per tonne.

PPDA Vice Chairman Raja Waseem Shehzad said the government had chosen to raise indirect taxes instead of extending relief to the public at a time of rising inflation. He said the heavy levies had pushed petroleum products beyond the reach of many consumers and were also causing losses to petrol pump owners because of falling sales volumes.

He called on the government to bring down petroleum prices by reducing levies and duties on petroleum products, warning that further increases could deepen difficulties for the public and inflict more damage on the fuel retail business.

Mr Shehzad said. He added that sales had dropped while operating expenses had risen because of higher electricity tariffs and other charges.

SCBA seeks reversal of increase

In a statement, SCBA President Haroonur Rashid, Secretary Malik Zahid Aslam Awan and members of the association’s 28th executive committee expressed concern over the increase in petrol and diesel prices.

The association said the latest rise in fuel prices had further intensified the difficulties faced by the public and added to inflationary pressure. The SCBA urged the federal government to immediately withdraw the recent increase in fuel prices and announce further relief measures, including cuts in electricity tariffs and the prices of essential commodities.

The criticism from the PPDA and the SCBA came as both bodies linked the latest fuel pricing measures to broader pressure on consumers and businesses. The dealers’ body focused on the impact of levies on affordability and fuel station operations, while the lawyers’ association said the increase would worsen the burden already being faced by the public.