Petroleum Minister Ali Pervaiz Malik on Saturday held consultations with industry stakeholders on the government’s proposed daily petroleum pricing mechanism. The reform aims to deregulate the fuel sector, improve transparency, and make retail prices more responsive to market conditions. Officials said the new system is part of a broader shift toward a market-based pricing regime.
The high-level meeting included representatives from the Oil and Gas Regulatory Authority (OGRA), Oil Companies Advisory Council (OCAC), Oil Marketing Association of Pakistan (OMAP), refineries, oil marketing companies, and the Petroleum Division. Participants discussed implementation challenges and provided feedback to support a smooth transition from weekly to daily price adjustments.
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According to an official statement, the reform has been approved by the federal cabinet on the directive of the prime minister. Under the proposed mechanism, retail fuel prices will be determined through a transparent formula based on market fundamentals. The government said the framework is intended to reduce political influence over fuel pricing while improving consumer protection.
Speaking during the meeting, Malik described the initiative as a major step toward a competitive and market-driven petroleum sector. He said replacing the weekly announcement cycle with a daily pricing system would reduce opportunities for market abuse and windfall gains. The minister added that the reform would align domestic fuel pricing more closely with international market movements.
Officials also reviewed technical aspects of the transition, including the Inland Freight Equalisation Margin (IEFM), refinery adjustments, inventory management, supply chain logistics, and true-up mechanisms. The Petroleum Division said detailed Standard Operating Procedures (SOPs) are being prepared in consultation with industry stakeholders.
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OGRA informed the meeting that it is upgrading its internal processes and data dissemination systems to support the new pricing model. Meanwhile, industry representatives highlighted operational concerns related to implementation. The government assured participants that genuine issues would be resolved through continued consultation.
The minister directed the Petroleum Division and OGRA to hold follow-up meetings with industry representatives to refine the pricing formula and address remaining technical issues. A dedicated committee has also been formed to oversee the transition and ensure the successful implementation of the daily petroleum pricing regime.