The federal government and petroleum dealers convened on Monday to discuss significant reforms in the petroleum sector amid the development of a new daily pricing mechanism. A delegation from the Pakistan Petroleum Dealers Association (PPDA) met with Federal Minister for Petroleum Ali Pervaiz Malik to exchange views on the implementation of these reforms and the updated pricing framework.
During the discussions, the PPDA delegation expressed strong support for the government’s introduction of the daily petroleum pricing system. They also commended the government’s efforts in maintaining a steady fuel supply during the Strait of Hormuz crisis, despite facing considerable challenges and shortages.
Federal Minister Ali Pervaiz Malik explained that the daily pricing system will utilize a 7-day rolling average, mirroring the previous weekly pricing approach, which was also based on a seven-day average. He emphasized that this new system aims to enhance transparency, minimize market distortions, and curb hoarding practices.
Representatives of the petroleum dealers requested inclusion in the regulatory framework governing dealers and oil marketing companies (OMCs). In response, the minister assured that their recommendations would be taken into account during the formulation of relevant rules and regulations.
Additionally, Ali Pervaiz Malik indicated that the government is considering raising dealers’ margins to 8 percent. A meeting between PPDA and officials from the Oil and Gas Regulatory Authority (OGRA) concerning dealers’ margins and other related issues is scheduled for the following day.
The petroleum minister expressed gratitude to the PPDA leadership for backing the government’s reform agenda, highlighting ongoing efforts to create a transparent, competitive, and consumer-friendly petroleum market.
