Islamabad: The federal government has changed the system for determining the prices of petroleum products in the country and has decided to issue prices on a daily basis. Under the new procedure, the Oil and Gas Regulatory Authority (OGRA) will issue new prices every day, keeping in mind the price trend in the global market, which will be applicable from the same night.
According to sources in the Petroleum Division, the global price of just one day will not be used as the basis for determining prices, but the new price will be set by keeping in mind the average international prices of the last seven days. Officials say that the aim of this procedure is to transfer the effects of sudden fluctuations in the global market to the consumers in a balanced manner.
Earlier, Federal Minister for Petroleum Ali Pervez Malik, along with Federal Minister for Information Attaullah Tarar, had said in a press conference that Prime Minister Shehbaz Sharif and the federal cabinet have approved the daily pricing. According to him, OGRA will release new prices every day on its website and local prices will also be adjusted according to changes in the global oil market.
According to the government’s stance, the aim of the new policy is to gradually deregulate the petroleum sector and make the pricing process more transparent and timely. Officials say that through this system, price reductions or increases in the global market will be transmitted to local consumers relatively quickly.
On the other hand, stakeholders associated with the energy sector have expressed reservations about the daily pricing system and have called for further consultations in this regard. Experts say that the practical results of the new system will be clear in the next few weeks, while it may have a direct impact on the domestic fuel market, consumers and supply chain.
