Petrol Price in Pakistan: Dealers Divided Over Government’s Daily Fuel Pricing Plan

The proposed changes to the petrol price in Pakistan have sparked divisions among petroleum dealers, as discussions continue over the government’s plan to introduce a daily fuel pricing mechanism for petrol and diesel.

Petrol pump owners from both Karachi and Lahore met with the Federal Minister for Petroleum on Monday to discuss the proposed policy, which would enable petrol and diesel prices to be adjusted daily in response to market movements, sources said.

The proposal has created differences within the petroleum dealers’ community. Some dealer representatives say they will accept the government’s proposal if it can raise their dealer margins and meet other requirements, but others have refused, saying it’s impractical.

A delegation of the Pakistan Petroleum Dealers Association (PPDA) from Karachi will visit Islamabad on Tuesday. The delegation will consult with staff of the Oil and Gas Regulatory Authority (OGRA) and hopes to discuss the proposed daily pricing system with the Petroleum Minister.

PPDA Senior Vice Chairman Tariq Hassan told the media the daily pricing is impractical for petrol pump owners.

“Daily fuel pricing is not practical, and we will not accept it,” he said, adding that the association would present its concerns during meetings with OGRA officials and the Petroleum Minister.

PPDA Advisor Malik Khuda Bakhsh, meanwhile, said that the talks with the Petroleum Minister were constructive and more consultations were expected.

A formal meeting between the Petroleum Minister and petrol pump owners is planned for Tuesday afternoon at the Petroleum Division in Islamabad. This could be a deciding factor in the government’s proposed plan for daily petrol price increment in Pakistan.

The proposed policy has sparked a lot of interest from consumers as they await further updates on the petrol price in Pakistan, and whether the existing fortnightly pricing model will be shifted to a daily pricing system.