Pakistan Plans Reforms to Petrol Price Determination System

ISLAMABAD: Pakistan is considering a new system for determining petrol prices as uncertainty grows in the international energy market. The Ministry of Energy has started reviewing the existing petroleum pricing mechanism amid global market fluctuations and tensions linked to the Strait of Hormuz. Proposed reforms are aimed at improving transparency in fuel pricing and strengthening the country’s energy security.

The proposals were discussed during the fourth meeting of a high-level committee reviewing the petroleum pricing system.

Federal Minister for Petroleum Ali Pervaiz Malik chaired the meeting. He said uncertainty in the global energy market had increased following the recent closure of the Strait of Hormuz, making changes to Pakistan’s pricing mechanism necessary.

The committee decided that the Oil and Gas Regulatory Authority (OGRA) would immediately begin publishing daily international Platts pricing data on its website.

The move will allow the public to independently monitor the international benchmark used for determining domestic petrol prices.

The meeting also approved measures to place the newly established Petroleum Price Stabilization Fund under a comprehensive regulatory framework.

Officials further agreed to digitalise Pakistan’s petrol supply chain. The measure is intended to improve transparency and help control hoarding.

Ali Pervaiz Malik directed that the committee’s next meeting would be its final session. The recommendations will then be submitted to Prime Minister Shehbaz Sharif for approval.

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

Source: ARY News