Pakistan’s business and industrial sector has sounded the alarm over a historic surge in petroleum prices, demanding the immediate cancellation of the Rs. 161 per litre Petroleum Development Levy (PDL) to prevent a full-blown economic crisis.

FPCCI President Atif Ikram Sheikh warned that the massive spike in fuel costs threatens to paralyze industries, disrupt supply chains, and trigger runaway inflation. Petrol prices have jumped by Rs. 137.23 to a record Rs. 458.40 per litre, while high-speed diesel (HSD) soared Rs. 184.49 to Rs. 520.35 per litre, representing increases of 43% and 55%, respectively. Combined with March 2026’s earlier rise, fuel prices have climbed 77% in just one month.

Sheikh stressed that passing such increases directly to businesses and consumers without proper consultation is unsustainable. He cautioned that the diesel surge will hit manufacturing hardest, jeopardizing Pakistan’s export competitiveness and pushing international buyers toward regional rivals.

FPCCI Senior Vice President Saquib Fayyaz Magoon said the price shock will have a cascading effect: manufacturing and textiles will face skyrocketing freight and production costs, agriculture will struggle with unaffordable diesel for tractors and harvesters, and SMEs—Pakistan’s economic backbone—will confront severe liquidity crises.

He added that the hike will directly impact logistics, pushing up prices of essential goods, medicines, and raw materials, while government-targeted subsidies are insufficient to offset the economic blow.

FPCCI has called for urgent talks with the Ministry of Finance and Ministry of Petroleum, warning that without immediate intervention, Pakistan could face mass bankruptcies, job losses, and nationwide socio-economic instability.