Petroleum dealers back daily fuel pricing system in meeting with Minister Ali Malik

ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) has welcomed the government’s proposed daily petroleum pricing mechanism and announced its support for the reform initiative during a meeting with Federal Minister for Petroleum Ali Pervaiz Malik.

During the meeting, both sides discussed proposed reforms in petroleum pricing and matters related to the fuel supply chain. The PPDA delegation praised the government for ensuring an uninterrupted supply of petroleum products during the Strait of Hormuz crisis.

PPDA Chief Advisor Malik Khuda Bakhsh said the government deserved appreciation for maintaining fuel availability across the country despite challenges in the international petroleum market. Members of the delegation noted that fuel supplies remained effective even during periods of concern over global shortages.

Speaking on the occasion, Petroleum Minister Ali Pervaiz Malik said the proposed daily pricing mechanism would be based on a seven-day rolling average. He explained that the previous weekly pricing system was also calculated on the basis of a seven-day average, but daily adjustments would improve transparency and help discourage market distortions and hoarding.

The PPDA delegation urged the government to include petroleum dealers in the formulation of regulations governing dealers and oil marketing companies (OMCs). The minister assured participants that dealers’ views would be incorporated into the policymaking process.

The delegation also demanded an increase in dealers’ margins to 8 percent. In response, the petroleum minister assured them that the proposal would be considered. He further announced that a meeting between the PPDA and the Oil and Gas Regulatory Authority (OGRA) had been arranged for the following day to discuss dealers’ margins and other related issues.

Ali Pervaiz Malik thanked the PPDA leadership for supporting the government’s reform agenda and reiterated the government’s commitment to establishing a transparent, competitive and consumer-friendly petroleum market.

The PPDA delegation included Chief Advisor Malik Khuda Bakhsh, Raja Waseem Kiani, Chaudhry Zafar Elahi, Babar Ali Chaudhry and Chaudhry Faisal Arif.