The Pakistan Petroleum Dealers Association (PPDA) has announced its support for the government’s new daily petroleum pricing mechanism.
A delegation from the PPDA met with Federal Minister for Petroleum Ali Pervaiz Malik to discuss the new fuel pricing framework and broader market reforms.
During the meeting, PPDA Chief Adviser Malik Khuda Bakhsh commended the government’s efforts to ensure an uninterrupted supply of petroleum products during the Strait of Hormuz crisis.
He noted that despite global challenges, Pakistan successfully maintained a stable and efficient fuel supply across the country.
Federal Minister Ali Pervaiz Malik explained that the new daily pricing mechanism for petroleum products will be based on a seven-day rolling average. He said the system is expected to enhance transparency in price determination, reduce market distortions, and discourage fuel hoarding.
The minister added that the previous weekly pricing system was also based on a seven-day average. However, the new daily pricing model will allow global market fluctuations to be reflected more accurately and promptly in domestic fuel prices.
The PPDA delegation also requested that petroleum dealers be included in the formulation of regulations governing the relationship between petroleum dealers and Oil Marketing Companies (OMCs). The minister assured the delegation that dealers’ recommendations would be taken into account during the policymaking process.
The association further called for an increase in the dealers’ margin to 8%. In response, the minister assured the delegation that the proposal would be reviewed and announced that a meeting between the PPDA and the Oil and Gas Regulatory Authority (OGRA) would be arranged to discuss dealers’ margins and other related issues.
The minister reaffirmed the government’s commitment to implementing reforms aimed at creating a transparent, competitive, and consumer-friendly petroleum market.
It is worth noting that the Oil and Gas Regulatory Authority (OGRA) is introducing a new daily fuel pricing system under which petroleum prices will be revised each day in line with fluctuations in international oil markets. Updated prices will be published on OGRA’s official website.
