ISLAMABAD: Pakistan’s information ministry said on Monday that the Pakistan Petroleum Dealers Association (PPDA) has expressed its support for the government’s proposed transition from weekly to daily oil price revisions, amid fuel supply disruptions resulting from renewed United States-Iran hostilities in the Gulf region.
Pakistan last week announced that it will begin setting fuel prices on a daily basis as fresh US-Iran military exchanges have pushed up global oil prices, handing responsibility for setting prices to the country’s oil regulator under a broader plan to increase transparency and deregulate the sector.
Pakistan has traditionally revised petroleum prices every fortnight but switched to weekly adjustments after fighting erupted between the US and Iran in late February, citing heightened volatility in international energy markets.
Petroleum Minister Ali Pervaiz Malik on Monday met a PPDA delegation, led by Chief Adviser Malik Khuda Baksh, to discuss petroleum pricing reforms, deregulation, and matters concerning petroleum dealers, according to the Pakistani information ministry.
“The PPDA delegation appreciated the government’s effective management of petroleum product supplies during the challenges arising from the Strait of Hormuz crisis,” the information ministry said in a statement.
“PPDA Chief Adviser Malik Khuda Baksh said that while several neighboring countries experienced law and order situations due to petroleum shortages, Pakistan successfully maintained smooth supplies through timely and effective government measures. He assured the Minister of the Association’s full support for the Government’s policy.”
On June 17, Pakistan increased petrol and diesel prices by Rs5.44 ($0.02) and Rs31.05 ($0.11) per liter, bringing them to Rs316.5 ($1.14) and Rs345.35 ($1.24) per liter, respectively, for a three-day period ending on July 20.
The increase followed a rise in global oil prices, with Brent crude climbing above $88.1 a barrel on Friday, approaching a one-month high.
The petroleum minister’s meeting with the PPDA delegation came ahead of an expected announcement of a revision in petroleum prices later on Monday.
Malik told petroleum dealers at Monday’s meeting that the government was moving toward a market-driven pricing system to promote transparency and protect consumers, according to the information ministry
“The PPDA delegation requested that petroleum dealers be consulted during the formulation of rules and operational modalities between Oil Marketing Companies (OMCs) and dealers,” the ministry said.
“The Minister assured the delegation that their views would be duly considered.”
