High petroleum prices are putting pressure on Pakistan’s export competitiveness by raising transport, logistics and production costs, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said on Monday.

He called on the federal government to review fuel prices, particularly high-speed diesel (HSD), and adopt a more practical pricing approach to reduce the cost of doing business.

Sheikh said diesel costs have a broad impact on the economy because the fuel is heavily used in transportation, agriculture and manufacturing. Higher prices, he added, increase the cost of moving goods and push up expenses throughout agricultural and industrial supply chains.

He said Pakistan’s industries would struggle to compete with regional producers and expand exports if domestic fuel costs remain elevated.

According to Sheikh, international crude prices are not the only reason for high fuel prices in Pakistan. Petroleum Development Levy (PDL) and other taxes also add significantly to the final price paid by consumers and businesses.

He urged the Finance and Energy ministries to reconsider the tax and levy burden on petroleum products, particularly diesel.

Sheikh said cheaper diesel could quickly reduce freight and transportation expenses, helping lower costs for manufacturers and providing some relief to consumers.

He also highlighted the impact on agriculture, saying lower diesel prices would reduce the operating costs of tractors and tube wells. This could help farmers manage expenses and contribute to greater stability in food prices.

Sheikh said a fuel-pricing policy focused on competitiveness rather than revenue collection would help Pakistan’s businesses, exports and wider economy.