THE Sindh Government’s decision to impose a 1.8% Infrastructure Development Cess on oil imports has raised serious concerns and disappointment. Already burdened by multiple layers of federal levies, including petroleum development levy and general sales tax, fuel prices are already high in our country. The imposition of an additional cess by Sindh Government which is estimated to raise petroleum prices by over Rs3 per litre directly contradicts the principle of public relief in essential commodities. This will further squeeze household budgets that are already under severe strain due to high prices of essential items.
Also concerning is the disruption this policy is already causing at the operational level. Several petroleum cargoes are currently docked at Karachi Port but cannot be cleared due to the imposition of the Cess. Fuel stocks at key storage terminals are running low and without immediate customs clearance, the country’s fuel supply chain could face serious interruptions. This delay is especially dangerous for the industrial production as well as the ongoing agriculture season, when uninterrupted fuel supply is critical for farming activities and transportation across the country. What makes this development particularly disappointing is the fact that it comes from the Pakistan People’s Party (PPP), a party with a long-standing reputation as being pro-people and pro-poor. The imposition of this Cess, under the current economic climate, not only undermines that reputation but also signals a lack of coordination between provincial policy-making and national economic imperatives. It is crucial to acknowledge the Sindh Government’s right to raise revenue for development. However, placing this burden on an already overtaxed and strategically vital sector like petroleum and doing so in a manner that disrupts its supply chain, is counterproductive and short-sighted. We urge Chief Minister Murad Ali Shah and the provincial cabinet to reconsider this decision. The PPP’s legacy is rooted in standing with the masses and in this case, standing with them means relieving them not adding to their economic burden. A prompt review and rollback of the Cess on petroleum products will not only restore public confidence but also prevent a looming national fuel crisis.
