Salt manufacturers urge review of daily petroleum price revisions

ISLAMABAD: The Salt Manufacturers Association of Pakistan has opposed the government’s move to introduce daily revisions in petroleum product prices, calling the policy harmful for industry, trade and the broader economy, and has asked Prime Minister Shehbaz Sharif to reconsider the decision.

SMAP Patron-in-Chief Ismail Suttar said industrial production had already come under intense pressure because of elevated electricity and gas charges as well as what he described as a heavy tax burden. He warned that shifting fuel prices on a daily basis would further disrupt business operations and make it extremely difficult for industries to function.

In a statement, Suttar said the government’s stated aim of supporting business, industry and investment was at odds with measures that, in his view, were creating fresh difficulties for the productive sector.

He said that if industries and businesses were forced to shut down, the state would also face difficulty in collecting taxes and generating revenue because the national economy relied heavily on commercial and industrial activity.

Concerns over costs and inflation

Suttar said frequent changes in petroleum prices would raise the burden on manufacturers and could also set off another round of inflation for consumers who were already facing economic strain. He said policy decisions should avoid adding further pressure on the economy, industry and the public, and instead help create conditions in which factories could operate smoothly and support employment.

Referring specifically to the salt sector, he said salt was a low-value but heavy commodity, making transport expenses a major part of production costs. According to him, daily changes in fuel prices would lead to constant shifts in transportation charges, complicating business planning and making it harder for traders to fix prices and keep supply chains stable.

The association proposed that petroleum prices should be revised weekly instead of every day.

The statement adds to concerns being voiced by business stakeholders over the impact of more frequent fuel price adjustments on operating costs and market stability.