Key Takeaways
- Pakistan’s petroleum dealers have endorsed the government's plan for daily fuel pricing.
- The move aims to improve transparency and reduce market distortions.
- Dealers are requesting an increase in their margins to 8%.
Petroleum dealers in Pakistan have given their backing to a new government initiative that will see daily adjustments in fuel prices, according to a statement from the Petroleum Division. This change follows a meeting on Monday between Petroleum Minister Ali Pervaiz Malik and representatives of the Pakistan Petroleum Dealers Association (PPDA).
The proposed reform involves moving from weekly price announcements to a system based on a seven-day rolling average of international oil prices. Minister Malik explained that this would better reflect real-time market movements, enhance transparency, and reduce opportunities for market manipulation and fuel hoarding.
During the meeting, PPDA Chief Adviser Malik Khuda Baksh expressed support for the government’s reform agenda while also voicing concerns about dealers’ margins. He said, 'We welcome the proposed pricing mechanism as it will improve our operations and ensure better transparency.'
The association praised the government's handling of petroleum supplies during the Strait of Hormuz crisis, noting that Pakistan maintained uninterrupted fuel availability despite regional disruptions. Khuda Baksh added, 'Timely government measures helped avert shortages that triggered law and order issues in several neighbouring countries.'
Dealers also requested an increase in their margins to 8%, arguing that their current margins had remained unrevised for some time. Malik assured the delegation that their concerns would be taken into account and announced that PPDA representatives would meet officials of the Oil and Gas Regulatory Authority (OGRA) on Tuesday to discuss the margin issue and other operational matters.
The petroleum minister thanked the association for its constructive engagement and reiterated the government's commitment to building a transparent, competitive, and consumer-friendly petroleum market while safeguarding public interest. The meeting underscored the ongoing dialogue between the government and industry stakeholders in addressing challenges faced by the sector.
'We welcome the proposed pricing mechanism as it will improve our operations and ensure better transparency.'
Malik Khuda Baksh, Chief Adviser, Pakistan Petroleum Dealers Association
'Timely government measures helped avert shortages that triggered law and order issues in several neighbouring countries.'
Malik Khuda Baksh, Chief Adviser, Pakistan Petroleum Dealers Association
