Petroleum Dealers Support Daily Fuel Pricing, Seek Higher Margins
The Pakistan Petroleum Dealers Association (PPDA) has expressed support for the government’s proposed daily petroleum pricing system while requesting an increase in dealers’ profit margins and greater participation in policy discussions.
The proposals were presented during a meeting between Federal Minister for Petroleum Ali Pervaiz Malik and a PPDA delegation led by Chief Adviser Malik Khuda Baksh.
Dealers Request Margin Increase
During the meeting, the PPDA urged the government to increase petroleum dealers’ margins to 8 percent. The association also requested that dealers be consulted when regulations governing their working relationship with Oil Marketing Companies (OMCs) are developed.
In response, the petroleum minister assured the delegation that their recommendations would be reviewed. He also confirmed that a meeting between the Oil and Gas Regulatory Authority (OGRA) and the PPDA has been scheduled to discuss dealer margins and other related matters.
Daily Fuel Pricing Proposal
The government is considering a daily fuel price adjustment mechanism aimed at improving price transparency and aligning domestic fuel prices more closely with changes in international oil markets.
According to the petroleum minister, the proposed system would continue to use a seven-day rolling average of global petroleum prices, similar to the current pricing method. However, prices would be updated more frequently to better reflect market trends and help reduce the risk of supply disruptions and market imbalances.
PPDA Appreciates Fuel Supply Management
The PPDA also acknowledged the government’s efforts to maintain stable fuel supplies during recent regional challenges affecting global energy markets.
Association representatives said timely measures helped ensure the continued availability of petroleum products across Pakistan, despite uncertainties in international supply chains.
Government Reaffirms Reform Commitment
Minister Ali Pervaiz Malik thanked the PPDA for its constructive engagement and support for ongoing reforms in the petroleum sector.
He reaffirmed the government’s commitment to promoting a transparent, competitive, and consumer-focused fuel market while continuing consultations with industry stakeholders as policy discussions move forward.
The PPDA delegation included Malik Khuda Baksh, Raja Waseem Kayani, Chaudhry Zafar Elahi, Babar Ali Chaudhary, and Chaudhry Faisal Arif.
