Petrol price determination system to be reformed in Pakistan

Islamabad: Pakistan is considering a new mechanism for determining petrol prices amid volatility in the global market and tensions around the Strait of Hormuz, and the Ministry of Energy has started reviewing the country’s petroleum pricing system.

The fourth meeting of a high-level committee tasked with reviewing the petroleum pricing system was held, chaired by Federal Minister for Petroleum Ali Pervaiz Malik.

The committee proposed a series of reforms aimed at improving transparency in fuel pricing and strengthening Pakistan’s energy security in light of fluctuations in global markets.

The federal minister for petroleum has said that due to the recent closure of the Strait of Hormuz, the uncertainty in the international energy market has risen, making reforms to Pakistan’s petrol pricing mechanism necessary.

It was decided in the meeting that the Oil and Gas Regulatory Authority (OGRA) would immediately begin publishing daily international Platts pricing data on its website. So that the public can independently monitor the benchmark used in determining domestic petrol prices.

The meeting also approved measures to ensure that the newly established ‘Petroleum Price Stabilization Fund’ operates under a comprehensive regulatory framework and to digitalize the country’s petrol supply chain to improve transparency and help curb hoarding.

On this occasion, Ali Pervaiz Malik has directed that the committee’s next meeting would be its final session, after which its recommendations would be submitted to Prime Minister Shehbaz Sharif for approval.

The meeting was attended by Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, OGRA Chairman Nabeel Awan and other senior government officials.