HYDERABAD: President of Hyderabad Chamber of Small Traders & Small Industry Muhammad Saleem Memon has marked the continued fluctuations in the prices of petrol and high-speed diesel (HSD) unacceptable and stated that daily changes in petroleum prices have made increasingly tough for small traders, industrialists, transporters and the general public to plan their business and manage household budgets.
He emphasised the government to introduce an effective and balanced mechanism that takes into account international market conditions without throwing the full impact of extreme fluctuations in global petroleum prices directly on to Pakistani consumers and the business community.
He said that the real issue is not merely an increase in petroleum prices, but the uncertainty and continuous volatility in prices. A trader purchasing goods today has no clear idea what the cost of transporting those goods, procuring raw materials or arranging logistics will be tomorrow. Similarly, industrialists are finding it increasingly difficult to accurately calculate their production costs, while transporters are also facing uncertainty when determining freight and transportation charges.
He stated that the consequences of rising petrol and diesel prices do not stay confined to fuel stations. It directly affects the transportation of raw materials, movement of finished goods, operation of generators in factories, agricultural machinery, warehousing, distribution, market access and the daily commuting of employees. As a result, production costs increase, followed by higher wholesale and retail prices, and ultimately the burden is transferred to the general consumer.
Memon said that the situation of small traders and small industries is considerably different from that of large corporations. Small industrialists and traders are already operating under tight profit margins and facing shortages of working capital, high electricity and gas costs and numerous other business challenges. In such circumstances, any sudden increase in petroleum prices directly erodes their already limited profit margins.
He further said that the impact of an increase in fuel prices is immediately reflected in the market, whereas the benefit of a subsequent reduction does not reach consumers with the same speed. If an industrialist has purchased raw materials or transported goods when diesel prices were high, a reduction in diesel prices the following day does not immediately bring down his overall cost. This is why continuous fluctuations in petroleum prices, rather than helping to control inflation, are undermining business planning and weakening confidence in the market.
The Chamber president said that according to recent figures, taxes and duties account for approximately Rs 114 per litre on petrol and around Rs 100 per litre on diesel. He pointed out that, in comparison with Pakistan, countries including Bangladesh have maintained their petroleum prices for several consecutive months despite the prevailing international energy crisis.
He urged the government to establish an effective Price Stabilisation Mechanism for petroleum products and provide special relief to small industries and SMEs. He also called for meaningful consultation with representatives of the business community while determining the mechanism for petroleum price adjustments.
Muhammad Saleem Memon said that business does not depend solely on affordable energy; it also depends on price stability and predictable policies. If an industrialist knows in advance what his raw-material, transportation and energy costs are likely to be, he can plan production, investment and employment more effectively. However, unpredictable daily changes in petroleum prices adversely affect all three areas investment, production and employment.
Copyright Business Recorder, 2026
