ISLAMABAD: Amid mounting criticism over the government’s decision to introduce daily fuel price revisions, Petroleum Minister Ali Pervaiz Malik on Monday defended the new petroleum pricing mechanism, insisting that the system would continue to rely on a seven-day rolling average of international prices.
The minister’s defence came as consumers and industry stakeholders voiced concerns over the impact of more frequent price adjustments and questioned whether the move would actually provide relief or simply expose domestic consumers to quicker changes in global oil prices.
Speaking to a delegation of the Pakistan Petroleum Dealers Association (PPDA), led by Chief Adviser Malik Khuda Baksh, the minister said the earlier weekly pricing system was also based on a seven-day average of international petroleum prices.
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He maintained that the new arrangement would only change the frequency of announcements, with prices now being updated daily using the same calculation method.
Malik said the government was moving towards a market-driven pricing system aimed at promoting competition and protecting consumers.
However, he acknowledged that the previous mechanism had increasingly become vulnerable to speculation, hoarding and artificial market adjustments, which contributed to distortions in the petroleum market.
The minister argued that daily pricing based on a rolling average would help discourage such practices by reducing uncertainty and allowing smoother price adjustments.
However, concerns remain over whether the new system will genuinely benefit consumers or merely enable faster transmission of international market volatility to domestic fuel prices.
According to a statement issued by the petroleum ministry, the PPDA delegation expressed support for the proposed mechanism but sought greater participation in the development of rules governing relations between oil marketing companies (OMCs) and petroleum dealers.
The association also raised the issue of the long-pending revision of dealers’ margins, demanding an increase to 8 percent.
The minister assured the delegation that the matter would be considered and arranged a meeting between PPDA representatives and the Oil and Gas Regulatory Authority (OGRA) today (Tuesday) to discuss the issue along with other concerns.
The minister thanked the PPDA leadership for engaging with the government’s reform agenda and reiterated that all stakeholders would be consulted in efforts to create what he described as a transparent and competitive petroleum market.
The ministry statement said that the PPDA delegation appreciated the government’s management of petroleum supplies during challenges linked to tensions around the Strait of Hormuz.
It quoted PPDA Chief Adviser Malik Khuda Baksh as saying that while some neighbouring countries experienced law and order issues due to petroleum shortages, Pakistan maintained uninterrupted fuel supplies through timely government measures.
He assured the minister of the association’s support for the government’s petroleum policies, according to the statement.
The PPDA delegation comprised Malik Khuda Baksh, Raja Waseem Kayani, Chaudhry Zafar Elahi, Babar Ali Chaudhary and Chaudhry Faisal Arif.
Copyright Business Recorder, 2026
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