Fourth meeting of the Committee constituted by the Prime Minister to review the petroleum pricing mechanism was held today under the chairmanship of Federal Minister for Petroleum Ali Pervaiz Malik. The committee reviewed international best practices and prevailing market conditions.
Speaking on the occasion, Federal Minister for Petroleum Ali Pervaiz Malik said the committee’s work had assumed greater significance in view of the renewed closure of the Strait of Hormuz and the resulting uncertainty in global energy markets. He noted from KPMG study that petrol prices in Pakistan remain lower than in Bangladesh, Sri Lanka and Türkiye, while being broadly comparable to those in India. He added that the government has proposed amendments to the Refinery Policy to increase domestic diesel production and reduce reliance on imported diesel, thereby strengthening the country’s energy security.
The committee reviewed various options of pricing mechanism. As an immediate step the committee recommended that OGRA publish daily Platts pricing data on its website so that the public has access to the benchmark used for petroleum pricing in Pakistan.
The committee agreed that recently established petroleum price stabilization fund should operate under a fully rule-based framework, with clearly defined mechanisms for both funding and disbursements, ensuring that its operation remains transparent and free from whimsical decision-making. Digitization of the oil supply chain was stressed by all members of the Committee. Chairing the meeting, Federal Minister for Petroleum Ali Pervaiz Malik directed that the next meeting would be the committee’s final meeting, after which its recommendations would be submitted to the Prime Minister for consideration.