The Pakistan Petroleum Dealers Association (PPDA) has welcomed the government’s proposed daily petroleum pricing system and announced its support for reforms aimed at increasing transparency and stability in the fuel market.
A delegation of the association met Federal Minister for Petroleum Ali Pervaiz Malik to discuss the new pricing mechanism, dealers’ margins and regulations governing relations between petroleum dealers and oil marketing companies.
Malik said the proposed daily pricing system would be based on a seven-day rolling average of international petroleum prices.
He said the previous weekly pricing mechanism was also calculated using a seven-day average, but daily adjustments would improve transparency and reduce opportunities for market distortion, speculative activity and hoarding.
The government has been reviewing changes to the petroleum pricing mechanism as part of broader efforts to improve transparency and market stability. Malik currently serves as federal minister for petroleum.
The PPDA delegation expressed support for the government’s reform agenda and appreciated the uninterrupted supply of petroleum products during the recent Strait of Hormuz crisis.
PPDA Chief Adviser Malik Khuda Bakhsh said Pakistan had maintained an effective fuel supply despite shortages in the international petroleum market.
The association urged the government to involve petroleum dealers in drafting rules governing their commercial relationship with oil marketing companies.
Malik assured the delegation that dealers’ views would be incorporated into the preparation of relevant rules and regulations.
The PPDA also sought an increase in dealers’ margins to 8%. The petroleum minister assured the delegation that the demand would be considered.
Malik said a meeting between PPDA representatives and the Oil and Gas Regulatory Authority would be held on Tuesday to discuss dealers’ margins and other outstanding issues.
He thanked the association’s leadership for supporting the government’s petroleum-sector reforms.
“The government is committed to establishing a transparent, competitive and consumer-friendly petroleum market,” the minister said.
The PPDA delegation included Malik Khuda Bakhsh, Raja Wasim Kayani, Chaudhry Zafar Elahi, Babar Ali Chaudhry and Chaudhry Faisal Arif.