Preparations to bring transparency in petroleum pricing, reform recommendations to be presented to the Prime Minister soon

Islamabad: The government has entered the final stage of the reform process to make the pricing system of petroleum products more transparent, effective and reliable. A high-level committee formed in this regard reviewed various proposals related to pricing mechanisms, supply chain monitoring and policy reforms in detail.

The meeting of the committee formed on the directions of the Prime Minister was held in Islamabad under the chairmanship of Federal Minister for Petroleum Ali Pervez Malik, in which the changing trends of the global energy market, the needs of the local market and future challenges were considered.

According to a statement issued after the meeting, the committee emphasised that the public should clearly know on the basis of which international indicators and financial factors the prices of petroleum products in the country are determined. The participants were of the view that greater transparency in the pricing system would increase public confidence.

The committee agreed to operate the Petroleum Price Stabilisation Fund under a structured and rules-based system that minimises the scope for arbitrary decisions. The meeting also supported the proposal to make the oil supply chain completely digital to further improve monitoring, record accuracy and transparency.

Federal Minister Ali Pervez Malik, while addressing the meeting, said that the global energy market is facing uncertainty, especially since the tension around the Strait of Hormuz has increased concerns about global oil supply. According to him, in such circumstances, it is the responsibility of the government to make the country’s energy system more stable and efficient.

He said that according to current comparative studies, petrol prices in Pakistan are lower than those of Bangladesh, Sri Lanka and Turkey, while they are close to those of India; however, the government’s focus is not limited to prices alone but also to creating a sustainable system that can better handle the effects of price fluctuations in the future.

The Petroleum Minister said that necessary amendments have been proposed in the refinery policy to reduce dependence on imported diesel. The aim of these reforms is to increase local refining capacity so that the country’s energy security is strengthened and dependence on imported fuel can be gradually reduced.

According to the statement, the upcoming meeting of the Petroleum Pricing Committee will be decisive in nature, in which final recommendations will be formulated for approval. These proposals will later be presented to the Prime Minister so that policy decisions can be made regarding the new and transparent system of petroleum pricing.