ISLAMABAD (Web Desk) –
The Pakistan Petroleum Dealers Association (PPDA) has formally announced its full backing for the federal government’s economic reform agenda, welcoming the newly introduced daily pricing system for petroleum products across the country. The landmark endorsement came during a high-level consultative meeting in Islamabad between Federal Minister for Petroleum Ali Pervaiz Malik and a delegation from the dealers’ association.
The PPDA delegation, led by Chief Adviser Malik Khuda Bakhsh, exchanged detailed views with the petroleum ministry regarding ongoing operational changes and regulatory reforms within the national energy supply chain. The meeting highlighted growing industry consensus around transitioning Pakistan’s fuel market toward a transparent, deregulation-focused framework.
Daily Pricing Mechanism and Market Transparency
Briefing the delegation on the structural shift, Petroleum Minister Ali Pervaiz Malik clarified that under the new daily adjustment framework, retail petroleum prices will be calculated using a seven-day rolling average of international benchmarks. He emphasized that the previous weekly mechanism was similarly rooted in a seven-day average, meaning the transition represents an evolutionary refinement rather than a volatile departure from baseline economics.
According to the minister, switching to daily price updates is a fundamental step toward ending artificial market distortions. By aligning domestic pump rates continuously with real-time global trends, the system discourages speculative hoarding by fuel stations, reduces room for political intervention, and prevents sudden price shocks for everyday consumers.
Acknowledging Fuel Supply Resilience
During the session, PPDA leadership commended the Ministry of Petroleum and the federal government for successfully managing domestic energy logistics. Malik Khuda Bakhsh praised authorities for keeping nationwide fuel supplies completely uninterrupted despite severe international shipping strain and regional volatility triggered by the Strait of Hormuz crisis.
“Despite international fuel crunches and regional supply chain bottlenecks, domestic petrol pumps received steady stocks without breaking down,” noted the PPDA chief adviser, attributing the smooth distribution to proactive government management.
Dealer Demands: Regulatory Input and 8% Margin Increase
While pledging their total cooperation toward deregulation, the petroleum dealers presented key operational demands to the ministry. The delegation urged the government to directly involve the PPDA in formulating new regulations governing Oil Marketing Companies (OMCs) and retail distribution networks.
Furthermore, the delegation formally requested an increase in the dealers’ commission margin up to 8 percent to offset rising operational costs, inflationary pressures, and utility expenses associated with running fuel stations.
Government Assurances and OGRA Engagement
Responding constructively to the association, Minister Ali Pervaiz Malik assured the delegation that genuine feedback and recommendations from retail operators would be incorporated into the upcoming regulatory framework. He affirmed that the government is actively giving due consideration to the dealers’ margin request.
The minister revealed that the Oil and Gas Regulatory Authority (OGRA) held a preliminary technical session with PPDA officials to review operational mechanics, inventory tracking systems, and margin structures. OGRA is currently upgrading its digital dissemination platforms to publish daily retail rates seamlessly to safeguard consumer rights.
Concluding the meeting, Ali Pervaiz Malik expressed deep gratitude to the PPDA for embracing the government’s reform agenda. He reiterated that the administration remains steadfastly committed to establishing a fully competitive, rules-based, and consumer-friendly petroleum market across Pakistan.
