Petrol price: New daily updates structure revealed

ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) has announced its support for government policies while welcoming the newly adopted daily pricing system for petroleum products, ARY News reported.

A PPDA delegation led by Malik Khuda Bakhsh called on Minister of Petroleum Ali Pervaiz Malik on Monday to exchange detailed views on reforms in petroleum product pricing.

During the meeting, PPDA head Malik Khuda Bakhsh commended the government for maintaining an uninterrupted fuel supply despite global petroleum shortages triggered by the Strait of Hormuz crisis. He noted that domestic fuel supplies were managed effectively throughout the international crunch.

On the occasion, the Petroleum Minister explained that the daily pricing system would be calculated using a seven-day rolling average, noting that the previous weekly system was also based on a seven-day average. The minister stated that daily pricing will boost market transparency and discourage hoarding.

The PPDA delegation requested that the association be involved in drafting regulations for Oil Marketing Companies (OMCs). Responding to their demands, Ali Pervaiz Malik assured the delegation that genuine suggestions from dealers would be incorporated into the rules and regulations.

The minister also assured the PPDA delegation that the government would consider their demand to increase the dealers’ margin up to 8%. He added that a meeting between the Oil and Gas Regulatory Authority (OGRA) and the PPDA was held yesterday to discuss the dealers’ margin and other operational matters.

Expressing his gratitude to the PPDA for supporting the government’s reform agenda, the minister reaffirmed the government’s commitment to establishing a transparent, competitive, and consumer-friendly petroleum market.