KARACHI: Business community has expressed serious concern over massive increase in petroleum prices, adversely hitting the cost of doing business, and bringing a wave of price hike and inflation. Terming the massive increase in petroleum prices a ‘petrol bomb’ on public, they urged the government to ends taxes on petroleum products. President of Korangi Association of Trade and Industry (KATI) Muhammad Ikram Rajput expressed serious concern over the recent sharp increase in petrol and diesel prices, describing it as a “petrol bomb” on public and economy. Rajput said Rs55 per litre increase, around 20 percent in petroleum prices, is deeply alarming for citizens and the business community already burdened by rising inflation. He noted that the sudden surge in fuel prices would further intensify economic pressures across the country. The KATI president noted that while global oil prices have experienced fluctuations due to geopolitical tensions, major economies such as China, India and Japan which obtain roughly 40 percent, 80 percent and 90 percent of their oil, respectively, through the Strait of Hormuz have not immediately passed such a significant burden on to their consumers. In contrast, he said, the abrupt increase in Pakistan has placed additional financial strain on the public. Rajput further noted that the government’s decision to shift the petroleum price adjustment mechanism from a fortnightly to a weekly basis has created uncertainty in the market. This change, he said, makes it difficult for both consumers and businesses to estimate future costs and plan accordingly. However, Abdul Rehman Fudda, President of the SITE Association of Industry expressed grave concern over the extraordinary increase in petroleum oil and lubricant (POL) prices. He said that in the present emergency situation the government should absorb the impact of the increase in international POL prices by cutting petroleum taxes, rather than passing the entire burden on to consumers, warning that failure to provide tax relief on POL would further intensify inflation and economic pressure on industry and the public alike. He suggested that along with other measures to reduce POL consumption, the fuel quota of all members of the national and provincial assemblies, as well as, government officers should be curtailed by at least 50 per cent. He added that consumers of petrol and diesel were already paying approximately Rs121 and Rs118 per litre respectively in taxes and margins. However, Syed Aman Shah, the Provincial Convener of Awaam Pakistan Party Balochistan strongly criticised the recent increase in petrol and diesel prices, stating that the decision has placed an unnecessary burden on the public and the national economy. He said the government has used the rise in global oil prices as an excuse to impose a new wave of inflation on the people, while in many major countries prices have remained relatively stable. He said that the decision appears to have been taken under the pretext of the Iran conflict or global circumstances for possible financial or political interests. He pointed out that in countries such as Iran, China, India, Bangladesh, and several Arab states, petrol prices have not been increased to the extent seen in Pakistan, which raises serious questions about the reasons behind the increase. Presenting historical data, he said that in 2014 when global crude oil prices were around 100 dollars per barrel, petrol in Pakistan was available at about 110 rupees per litre and diesel at around 115 rupees per litre. Copyright Business Recorder, 2026