Pakistan Goods Transporters Raise Freight Charges 5% After Fuel Hike

ISLAMABAD: Pakistan’s goods transport sector has announced a five per cent increase in freight charges after another rise in petroleum prices, adding fresh pressure to the cost of moving goods across the country. The All-Pakistan Goods Transport Alliance said the new fares were being introduced after diesel and petrol became more expensive, while transporters also renewed warnings of a possible nationwide strike if earlier commitments made by authorities are not implemented.

The latest government revision raised the price of high-speed diesel by Rs5.28 to Rs403.32 per litre and petrol by Rs5.02 to Rs375.82 per litre. The revised rates took effect from September 12 and are scheduled to remain in place through September 14 under the current pricing arrangement. Diesel costs are particularly important for the freight industry because heavy commercial vehicles depend heavily on the fuel for long-distance transportation.

Alliance President Malik Shehzad Awan announced the additional five per cent increase in freight charges while expressing opposition to the continuing rise in petroleum prices. He said diesel and petrol had become substantially more expensive over the preceding several days, increasing operating costs for transport businesses throughout Pakistan.

The fuel increases have come during renewed volatility in international energy markets. Brent crude was trading above $105 a barrel on Friday as concerns persisted about Middle East supply disruptions and risks affecting shipping through the Strait of Hormuz and the Red Sea. The continuing US-Iran conflict has added to uncertainty surrounding global oil supplies, with Pakistan exposed to international price movements because of its dependence on imported energy.

The dispute also revives tensions between transporters and the government following a nationwide freight strike in August. Goods transport operators remained on strike from August 8 until August 17 before suspending their protest after discussions with authorities. Their concerns included frequent petroleum price revisions, toll charges and enforcement of existing axle-load regulations governing commercial vehicles.

Transport representatives said the August protest was suspended for 40 days after the government agreed to address their demands, including concerns about daily changes in petroleum prices. Awan warned that the period granted to the authorities is due to expire next week and said transporters could resume a nationwide strike if federal and provincial governments fail to implement the commitments made during negotiations. He also called for relief in withholding taxes, tolls and other charges if higher petroleum prices cannot be avoided.

The immediate effect of the decision is an increase in road-freight costs for businesses that depend on commercial transport to move products between cities and provinces. No government response to the latest announcement had been issued when the report was filed. Attention will now focus on whether authorities engage the transport alliance before the 40-day deadline expires and whether further fuel-price changes intensify the dispute.