Petroleum dealers back daily fuel pricing reform, seek higher margins
- Minister says existing weekly pricing formula was also based on a seven-day average
Pakistan's petroleum dealers support the government's plan for daily fuel price adjustments to enhance transparency, while also advocating for an increase in their profit margins.
- Government's new daily petroleum pricing mechanism.
- Petroleum dealers' request for increased profit margins.
- How daily pricing aims to curb market manipulation.
Pakistan’s petroleum dealers have endorsed the government’s plan to introduce daily petroleum price adjustments, saying the move would improve transparency and curb market distortions, while also pressing for an increase in dealers’ margins.
The support came during a meeting on Monday between Petroleum Minister Ali Pervaiz Malik and a delegation of the Pakistan Petroleum Dealers Association (PPDA), led by Chief Adviser Malik Khuda Baksh.
According to a statement issued by the Petroleum Division, the minister briefed the delegation on the government’s transition from weekly to daily petroleum price announcements.
Under the new mechanism, prices will be determined using a seven-day rolling average of international oil prices.
Malik said the existing weekly pricing formula was also based on a seven-day average, but updating prices daily would better reflect international market movements, enhance transparency, and reduce opportunities for market manipulation and fuel hoarding.
The PPDA welcomed the proposed pricing mechanism and pledged its support for the government’s reform agenda.
The dealers also praised the government’s handling of petroleum supplies during the Strait of Hormuz crisis, saying Pakistan had maintained uninterrupted fuel availability despite regional disruptions. Khuda Baksh said timely government measures helped avert shortages that triggered law and order issues in several neighbouring countries.
During the meeting, the PPDA urged the government to consult petroleum dealers while framing operational rules governing relations between Oil Marketing Companies (OMCs) and dealers. The delegation also requested an increase in dealers’ margins to 8%, arguing that their margins had remained unrevised.
The petroleum minister assured the delegation that their concerns would be taken into account and announced that PPDA representatives would meet officials of the Oil and Gas Regulatory Authority (OGRA) on Tuesday to discuss the margin issue and other operational matters.
Malik thanked the association for its constructive engagement and reiterated the government’s commitment to building a transparent, competitive and consumer-friendly petroleum market while safeguarding public interest.
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