Govt, petroleum dealers discuss reforms as daily pricing system takes shape

The federal government and petroleum dealers on Monday discussed key reforms in the petroleum sector as the new daily pricing mechanism moves forward.

A delegation of the Pakistan Petroleum Dealers Association (PPDA) met Federal Minister for Petroleum Ali Pervaiz Malik and exchanged views on the implementation of petroleum reforms and the new pricing framework.

During the meeting, the PPDA delegation welcomed the government’s daily petroleum pricing system and announced support for the policy. The delegation also appreciated the government’s efforts to ensure an uninterrupted fuel supply during the Strait of Hormuz crisis, despite challenges and shortages.

Federal Minister Ali Pervaiz Malik said the daily pricing mechanism will be based on a 7-day rolling average, similar to the previous weekly pricing system, which was also linked to a seven-day average.

He said the new system would improve transparency, reduce market distortions and help prevent hoarding.

The petroleum dealers’ representatives called for their inclusion in the regulatory framework for dealers and oil marketing companies (OMCs). In response, the minister assured that dealers’ recommendations would be considered while formulating rules and regulations.

Ali Pervaiz Malik also assured the PPDA delegation that the government would consider increasing dealers’ margins to 8 per cent. A meeting between PPDA and OGRA officials on dealers’ margins and other matters is scheduled for tomorrow.

The petroleum minister thanked PPDA leadership for supporting the government’s reform agenda, saying efforts are underway to establish a transparent, competitive and consumer-friendly petroleum market.