ISLAMABAD: A committee formed by the prime minister to review Pakistan’s petroleum pricing mechanism has proposed a series of reforms aimed at enhancing transparency, strengthening energy security and improving market stability.
The recommendations were discussed during the committee’s fourth meeting, chaired by Minister for Petroleum Ali Pervaiz Malik.The minister said the committee’s work has become more important due to the renewed closure of the Strait of Hormuz, which has increased uncertainty in global energy markets. Citing a KPMG study, he said petrol prices in Pakistan remain lower than those in Bangladesh, Sri Lanka, and Turkiye, while remaining broadly comparable to India.
He added that the government has proposed amendments to the Refinery Policy to increase domestic diesel production and reduce dependence on imported diesel.As an immediate measure, the committee recommended that the Oil and Gas Regulatory Authority (Ogra) publish daily Platts benchmark pricing data on its website to improve public access to the pricing benchmark used for petroleum products in Pakistan.
The committee also agreed that the recently established petroleum price stabilisation fund should operate under a transparent, rule-based framework with clearly defined mechanisms for funding and disbursement. Members also emphasized the need to digitise the oil supply chain.
The petroleum minister directed that the committee’s next meeting would be its final session, after which its recommendations would be submitted to the prime minister for consideration.The meeting was attended by Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, Chairperson of Ogra Nabeel Awan, representatives of KPMG, the Finance Division, Pakistan State Oil, the Ministry of Law and Justice, and the Petroleum Division.
