The federal government is considering a proposal to revise petrol and diesel prices daily instead of under the current weekly system.
The proposal was discussed during the fourth meeting of the committee formed by the prime minister to review Pakistan’s petroleum pricing mechanism. Federal Minister for Petroleum Ali Pervaiz Malik chaired the meeting on Monday.
Global Energy Uncertainty Raises Pricing Concerns
During the meeting, Malik said the committee’s work is now more important because the Strait of Hormuz has closed again and global energy markets are uncertain.
Citing a KPMG study by a consultancy firm, the minister said petrol prices in Pakistan were lower than those in Bangladesh, Sri Lanka and Türkiye, while remaining broadly comparable to prices in India.
The committee reviewed different petroleum pricing options and recommended that OGRA begin publishing daily Platts benchmark prices on its website.
This would allow consumers to see the international benchmark used to calculate petroleum prices in Pakistan.
Daily Fuel Pricing Reportedly Under Consideration
The official government press release did not identify the specific pricing models discussed during the meeting.
However, several media outlets have reported that KPMG presented four options for fuel price revisions:
- Monthly
- Fortnightly
- Weekly
- Daily
Committee members have reportedly shown a preference for the daily pricing model.
Under the proposed system, OGRA would calculate petrol and diesel prices every night. The revised rates would take effect from midnight.
The proposed mechanism would also change how petroleum prices are approved.
Under the new system, OGRA would determine and notify the rates without sending pricing summaries to the Petroleum Division, Finance Division, and the Prime Minister for final approval.
Reports also suggest that, under the proposed model, the IFEM (Inland Freight Equalization Margin), OMC (Oil Marketing Companies) margins, and dealers’ commissions would no longer be set by the government.
Instead, oil marketing companies would be allowed to determine these components themselves, just as they do in high-octane fuel.
No Final Decision Yet
The daily pricing mechanism has not yet been approved.
The petroleum minister has directed the committee to finalize its recommendations in its next meeting. The recommendations will then be submitted to the prime minister for consideration.
Until a final decision is announced, petrol and diesel prices will continue to be revised under the existing weekly pricing mechanism.
Follow PakWheels on Google News for instant updates
Comments are closed.