The caretaker government has devised a fresh strategy for the pricing of petroleum products, aiming to shift from a 15-day interval to a 7-day determination period.
The Oil and Gas Regulatory Authority (OGRA) has initiated consultations with petroleum dealers and companies to gather input on this proposed change.
Policy-level discussions are currently underway to finalize the decision-making process, considering the shift to a seven-day pricing mechanism. However, the proposal has faced resistance from the Petroleum Dealers Association, which rejected the idea of altering the pricing frequency.
Expressing concerns, the association argued that determining petroleum product prices every week could lead to shortages at petrol pumps. They emphasized that such a frequent adjustment could result in pumps drying up, holding the government responsible for potential fuel shortages.
Notably, the dealers had suggested fixing prices for a longer duration, proposing a 30-day interval instead of the current 15-day period. They highlighted that the rapid changes in pricing contribute to shortages and disrupt the supply chain, particularly affecting pumps in remote areas.
The Pakistan Petroleum Dealers Association conveyed its stance on the matter through a reply letter to OGRA, emphasizing the potential challenges and market uncertainties that may arise from the proposed shift in the pricing mechanism. The ongoing discussions and consultations will play a crucial role in determining the future pricing strategy for petroleum products in the country.
