A high-level government committee has proposed a series of reforms to Pakistan’s petroleum pricing mechanism aimed at improving transparency, strengthening market stability, and enhancing the country’s energy security amid uncertainty in global oil markets.
The recommendations were discussed during the fourth meeting of the committee formed by the prime minister and chaired by Federal Minister for Petroleum Ali Pervaiz Malik.
Global Market Uncertainty Discussed
During the meeting, the petroleum minister highlighted the growing uncertainty in international energy markets following the renewed closure of the Strait of Hormuz.
He said the changing global situation has increased the importance of developing a more transparent and resilient fuel pricing system for Pakistan.
Citing a KPMG study, Malik also noted that petrol prices in Pakistan remain lower than those in Bangladesh, Sri Lanka, and Turkiye, while being broadly comparable with prices in India.
Refinery Policy Reforms Under Consideration
The minister said the government has proposed amendments to the Refinery Policy to boost local diesel production and reduce reliance on imported fuel.
The proposed changes are intended to improve Pakistan’s long-term energy security and strengthen domestic refining capacity.
OGRA May Publish Daily Platts Data
As an immediate measure, the committee recommended that the Oil and Gas Regulatory Authority (OGRA) publish daily Platts pricing data on its official website.
The move aims to increase transparency by allowing the public to view the international benchmark used in determining domestic petroleum prices.
Rule-Based Price Stabilisation Fund Proposed
Committee members also agreed that the recently established Petroleum Price Stabilisation Fund should operate under a clearly defined, rule-based framework.
The proposed system would establish transparent procedures for both funding and disbursement to reduce the possibility of arbitrary decisions.
Focus on Digital Oil Supply Chain
The committee also emphasized the need to digitize Pakistan’s oil supply chain to improve operational efficiency, monitoring, and regulatory oversight across the petroleum sector.
Final Recommendations to Be Sent to Prime Minister
Minister Ali Pervaiz Malik directed that the committee’s next meeting would be its final session, after which a comprehensive set of recommendations will be submitted to the prime minister for approval.
The meeting was attended by Federal Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, OGRA Chairman Nabeel Awan, representatives from KPMG, Pakistan State Oil (PSO), the Finance Division, the Petroleum Division, the Ministry of Law and Justice, and other committee members.
