By Commerce Reporter
LAHORE — Although the federal government recently announced a reduction in petrol prices aimed at providing relief to consumers amid fluctuating global crude rates, many petrol stations across the country have reportedly not lowered the prices of high-octane fuel, drawing sharp criticism from business leaders.
Read also: LCCI SVP Tanveer Sheikh welcomes fuel price cuts, urges broader economic reforms
In its latest fortnightly review, the government cut the retail price of regular petrol by a modest margin in line with international market trends and the recommendations of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries. This move was intended to provide some respite to motorists and transporters grappling with high fuel costs.
However, industry and consumer feedback indicates that while base petrol prices have been adjusted downward, the cost of high-octane petrol — typically used in premium and high-performance vehicles — has not seen a corresponding reduction at many service stations. Despite official price adjustments, high-octane fuel prices remain elevated, often reflecting dealer-level markups rather than updated retail rates tied to official notifications. Experts point out that high-octane pricing in Pakistan is not strictly regulated by OGRA; instead, individual oil marketing companies (OMCs) set these rates, resulting in significant variation in pricing across outlets.
Speaking to thetribuneinternational.com, Sheikh Tanveer Ahmed, Senior Vice President of the Lahore Chamber of Commerce and Industry (LCCI), said the failure of petrol stations to adjust high-octane fuel prices in line with government cuts was “unjust and a disservice to consumers.” According to Ahmed, while motorists welcomed the official reduction in regular petrol prices, the lack of relief for high-octane fuel buyers negates much of that benefit. He warned that this discrepancy could dampen consumer confidence and place added strain on sectors that rely on premium fuel.
“Government announcements on price cuts are intended for relief. But when service stations continue to charge unchanged or even higher rates for high-octane fuel, it defeats the purpose. The government must ensure transparent pricing where consumers directly benefit from official reductions,” Ahmed said. He added that this gap disproportionately affects high-income motorists and commercial users of premium fuel but ultimately has trickle-down effects on transport and logistics sectors, raising operational costs.
Analysts say the price sensitivity of high-octane petrol reflects broader issues in Pakistan’s fuel pricing mechanism. Unlike regular petrol, which follows a formula tied to OGRA guidelines and international benchmarks, high-octane fuel pricing has historically been influenced by import costs, dealer margins, and additive expenses. This complexity allows variations that can cushion or negate price changes decreed at the policy level.
Consumer groups have echoed concerns about inconsistent pricing practices, urging the government to intensify oversight and ensure that approved prices are uniformly and promptly implemented at the pump. Critics argue that without enforcement, public announcements of price relief will have limited practical impact.
Sheikh Tanveer Ahmed also urged relevant regulators to investigate why many outlets continue to charge high rates for premium fuel despite government cuts in base petrol prices. “If necessary, there should be penalties for non-compliance to protect the common consumer’s interests,” he said.
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