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Consumers Association of Pakistan (CAP) Chairman Kaukab Iqbal has called for an immediate review of Pakistan’s fuel pricing policy.
He said frequent increases in petrol and diesel prices were putting pressure on household budgets and business costs.
Iqbal urged the government to publicly explain the formula used to determine petroleum prices. He also called for greater clarity on how changes in international oil prices affect domestic fuel rates.
The government has said Pakistan’s petroleum pricing system uses a seven-day rolling average. It has also introduced targeted relief for lower-income consumers using motorcycles, rickshaws, other two- and three-wheelers and small cars.
Iqbal said consumers should be able to understand how the government calculates fuel prices.
He questioned how quickly changes in international oil prices should pass through to domestic consumers.
He also called for clear information on the pricing period and averaging mechanism.
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According to the government, the current system uses a seven-day rolling average.
Iqbal said higher fuel prices affect more than motorists. He linked rising fuel costs to transport fares, food prices, medicines, logistics, agriculture and manufacturing.
He said these effects can eventually increase the cost of living for households.
Iqbal also raised concerns about the implementation of the government’s targeted fuel relief programme.
The government’s scheme provides Rs500 per week to eligible two- and three-wheeler users. It also provides Rs1,000 for 10 days to eligible owners of cars up to 800cc. The scheme is limited to non-commercial users and one vehicle per person.
Iqbal said the government should clearly explain how the subsidy will work in practice.
He called for details on who will bear the cost, how petroleum dealers will receive reimbursements and how quickly payments will be processed.
“If petroleum dealers themselves have concerns about the implementation mechanism, the government should not ignore them,” Iqbal said.
He urged the authorities to consult dealers before implementing measures that could create operational or financial problems.
Iqbal called for broader consultation on petroleum pricing and consumer relief.
He proposed bringing together the Federation of Pakistan Chambers of Commerce and Industry, chambers, trade associations, petroleum dealers, oil marketing companies and consumer representatives.
He said such consultations could help develop a more predictable and sustainable pricing mechanism.
The government has defended targeted subsidies as a way to direct support towards consumers who need it most rather than providing a blanket subsidy.
Iqbal also called for a review of the petroleum levy.
He said the government should consider reducing or abolishing the levy where financially possible.
He also urged authorities to reduce non-essential public spending and adopt stronger austerity measures.
“The government can generate significant savings by reducing non-essential expenditure and adopting meaningful austerity measures,” he said.
Iqbal said the burden of higher fuel prices eventually reaches consumers through increased household and business costs.
He urged the government to maintain a predictable fuel pricing policy and provide clear information about future revisions.
The CAP chairman said consumers needed transparency, predictability and effective relief as fuel costs continued to affect household budgets.
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