Govt moves to reform petroleum pricing system, committee reviews global models

ISLAMABAD: The federal government has moved towards reforming the petroleum pricing system, with a committee reviewing different mechanisms being followed globally.

The committee formed by Prime Minister Shehbaz Sharif and chaired by Petroleum Minister Ali Pervaiz Malik held a meeting in Islamabad today. During the meeting, various models for determining petroleum prices in line with international market trends were discussed.

Committee members reviewed options to introduce a more transparent and rules-based petroleum pricing mechanism, according to the declaration of the meeting.

The committee also agreed to operate the “Petroleum Price Stabilisation Fund” under a structured, rules-based system to help manage fluctuations in fuel prices.

All members endorsed the digitalisation of the oil supply chain, stressing that the move would improve transparency and efficiency in the petroleum sector.

Speaking during the meeting, the petroleum minister said the re-closure of the Strait of Hormuz has created uncertainty in global energy markets.

He said petroleum prices in Pakistan remain lower than those in Bangladesh and Sri Lanka, while they are comparable to prices in India.

The minister said amendments have been proposed to the refinery policy to increase local diesel production, adding that enhanced domestic production would strengthen Pakistan’s energy security.

Pervaiz Malik said the committee’s next meeting would be the final session, after which recommendations would be presented to the Prime Minister for further decisions.