The Pakistan Petroleum Dealers Association (PPDA) backed the government’s planned change to a daily petroleum pricing process and urged on an increase in dealers’ margins to 8 percent and a greater say in the formulation of operational policies along with Oil Marketing Companies (OMCs).
Petroleum Minister Ali Pervaiz Malik and a PPDA delegation headed by Chief Adviser Malik Khuda Baksh met here and the issues were highlighted. The group highlighted the need to involve petroleum dealers in the formulation of rules that define their working relationship with the OMCs.
The minister assured the delegation that their proposals would be considered in response. He also confirmed that the PPDA has a follow-up meeting with the Oil and Gas Regulatory Authority (OGRA) on Tuesday, where dealer margins and other pending issues will be discussed in detail.
The proposed daily pricing mechanism would still be based on a seven-day rolling average of international oil prices, as is the current weekly system, Malik said. He said, however, that more regular updates will increase transparency, better align domestic pricing with global prices, and help eliminate activities like hoarding and market manipulation.
The PPDA also praised the administration for its good management of petroleum supplies during the Strait of Hormuz issue. Pakistan continued to supply the region regularly, even though some of the neighboring nations were facing petroleum shortages. The association thanked the government for timely action to arrange supply.
The Minister thanked the representatives of the PPDA for their support to the reform initiative and reaffirmed the commitment of the government to a transparent, competitive and consumer friendly petroleum sector.
The PPDA delegation included Malik Khuda Baksh, Raja Waseem Kayani, Chaudhry Zafar Elahi, Babar Ali Chaudhary and Chaudhry Faisal Arif.
