The federal government has taken significant steps to reform the petroleum pricing system by establishing a committee to examine various global pricing mechanisms. This committee, formed by Prime Minister Shehbaz Sharif and led by Petroleum Minister Ali Pervaiz Malik, convened in Islamabad to discuss potential models that align petroleum prices with international market trends.
During the meeting, members evaluated different approaches aimed at creating a more transparent and rule-based pricing framework. In a notable development, the committee agreed to manage the Petroleum Price Stabilisation Fund through a structured system to better handle fuel price volatility.
Furthermore, all participants supported the digitalisation of the oil supply chain, emphasizing that this initiative would enhance transparency and operational efficiency within the petroleum sector.
Addressing the meeting, the petroleum minister highlighted the recent re-closure of the Strait of Hormuz, which has introduced uncertainty into global energy markets. He also pointed out that petroleum prices in Pakistan are currently lower than those in Bangladesh and Sri Lanka, while remaining comparable to prices in India.
In addition, the minister mentioned proposed amendments to the refinery policy aimed at boosting local diesel production, a move expected to reinforce Pakistan’s energy security by increasing domestic output.
Looking ahead, Pervaiz Malik stated that the committee’s upcoming meeting would be its final session, after which it will submit its recommendations to the Prime Minister for further action.
