Rs32 Diesel Cut Can Bring Down Business Costs, Boost Economic Activity: FCCI President
FAISALABAD, (APP – UrduPoint / Pakistan Point News – August 20, 2026)
Faisalabad Chamber of Commerce & Industry (FCCI) President Farooq Yousaf Sheikh said that the government’s decision to slash the price of diesel by Rs32 per liter could provide a much-needed cost reprieve to Pakistan’s industry, trade and agriculture while easing the burden on consumers through lower transportation and distribution costs.
Welcoming the immediate reduction here on Thursday, he noted that diesel prices had a direct bearing on almost every segment of the economy, from transportation of raw materials and agricultural inputs to the movement of finished goods and essential commodities to markets.
He predicted that a substantial reduction in diesel prices would lower transportation expenses, reduce industrial production costs, and support agricultural activities. He added that ultimately, this could help contain inflationary pressures and provide relief to both businesses and consumers.
However, Sheikh stressed that the reduction should be seen as a starting point rather than the end of efforts to bring down the cost of doing business, arguing that the prevailing economic conditions and persistently high production costs demanded further cuts in petroleum prices.
He explained that petroleum prices have a multiplier effect across the economy because fuel costs are embedded in the transportation of raw materials, movement of finished products, energy expenses, and agricultural operations. Any sustained reduction in fuel prices could therefore translate into broader savings across supply chains.
The FCCI President also urged the government to adopt additional measures to reduce energy costs for industry and trade and ease the tax and regulatory burden on businesses. He emphasized that lowering the overall cost of doing business is essential for improving industrial competitiveness and encouraging fresh investment, which in turn could increase industrial production, generate employment, and stimulate economic activity across the country.
He concluded by stating that coordinated measures aimed at reducing fuel and energy costs, improving the regulatory environment, and supporting productive sectors could give businesses greater room to expand and compete in domestic and international markets.
