ISLAMABAD, JUL 18: Federal Minister for Petroleum Ali Pervaiz Malik on Saturday held a meeting with key petroleum sector stakeholders on the government’s transition from weekly to daily petroleum pricing, saying the reform would promote transparency, strengthen competition and ensure fair, market-based prices for consumers.
Among others, the meeting was attended by representatives of the Oil and Gas Regulatory Authority (OGRA), the Oil Companies Advisory Council (OCAC), the Oil Marketing Association of Pakistan (OMAP), refineries, Oil Marketing Companies (OMCs) and senior officials of the Petroleum Division to discuss the implementation of the new pricing mechanism, a news release said.
The meeting was convened to brief industry stakeholders on the shift from weekly to daily petroleum price adjustments and obtain feedback on implementation challenges to ensure a smooth transition.
The move was widely welcomed by the industry, which described it as a positive step towards deregulating Pakistan’s petroleum sector.
The minister informed the meeting that the reform had been introduced on the directive of the prime minister and approved by the federal cabinet as part of the government’s commitment to establishing a rules-based petroleum pricing regime.
Under the new mechanism, retail petroleum prices will be determined through a transparent, formula-based system driven by market fundamentals, reducing the scope for political intervention and shielding consumers from abrupt price distortions.
He said the new system would help curb market abuse and eliminate opportunities for windfall gains while ensuring greater transparency and fair pricing for consumers.
Officials told the meeting that the daily pricing mechanism formed a key component of the government’s phased deregulation strategy aimed at gradually reducing state intervention and allowing market forces to determine petroleum prices, similar to the daily movement of exchange rates.
The minister said the Petroleum Division, in consultation with OGRA and industry stakeholders, was finalising comprehensive standard operating procedures (SOPs) to facilitate the transition.
He added that technical matters, including the Inland Freight Equalization Margin (IFEM), refinery adjustments and true-up mechanisms, were being addressed through close coordination with stakeholders.
OGRA informed the meeting that it had aligned its internal systems to implement the new regime and was upgrading its data dissemination mechanisms to publish daily petroleum price information for greater public transparency.
The meeting also reviewed operational issues relating to supply chain logistics, inventory management and the availability of real-time data.
The government assured stakeholders of its full support in addressing operational challenges and informed them that a dedicated committee had been constituted to oversee the transition and resolve implementation issues through consensus.
The minister stressed that OGRA, district administrations, oil marketing companies, dealers, OCAC and OMAP all had important roles in ensuring the success of the reform. He acknowledged that major reforms often presented implementation challenges but reiterated the government’s commitment to protecting consumers’ interests while ensuring the long-term sustainability of the petroleum sector.
Representatives of OCAC, OMAP, refineries and OMCs shared their views and highlighted operational concerns regarding the implementation of the daily pricing mechanism.
The minister assured them that all genuine issues would be addressed through continued consultation and collaborative engagement.
He directed the Petroleum Division and OGRA to hold follow-up meetings with industry representatives to further refine the pricing formula, resolve outstanding technical issues and ensure the successful rollout of the daily petroleum pricing regime.
