Government reviews petroleum pricing reforms, transparency measures, and competition policies to modernize Pakistan’s oil sector.
Pakistan’s efforts to reform the petroleum industry gained momentum as the Petroleum Pricing Committee moved closer to implementing a phased deregulation framework for the oil sector.
The fifth meeting of the committee, established by Prime Minister Shehbaz Sharif to review the petroleum pricing mechanism, was chaired by Federal Minister for Petroleum Ali Pervaiz Malik.
During the meeting, various sub-committees presented their findings and recommendations on key elements of the petroleum pricing structure.
In addition, KPMG shared a comparative analysis of petroleum pricing and taxation systems across regional countries, offering insights into international best practices and potential reforms for Pakistan.
Committee members appreciated the introduction of the daily petroleum pricing formula and acknowledged measures aimed at increasing transparency and reducing price volatility.
The participants noted that the revised pricing mechanism could contribute to a more predictable and market-oriented fuel pricing environment.
Speaking on the occasion, Petroleum Minister Ali Pervaiz Malik stressed that deregulation of the petroleum sector should proceed through a well-defined and measurable roadmap.
He emphasized the need for clear benchmarks and milestones to evaluate progress and ensure that reform objectives are achieved effectively.
The committee was informed that the dashboard launched on the Oil and Gas Regulatory Authority (OGRA) website is now fully operational.
The platform provides real-time information on petroleum product prices, pricing formulas, and relevant Platts data, enabling greater public access to pricing information and strengthening transparency.
Members also reviewed the potential role of strategic petroleum reserves and a proposed price stabilization fund. These initiatives were discussed as tools to reduce market volatility, maintain stable petroleum supplies, and protect consumers from sudden price fluctuations.
The meeting further highlighted the importance of digitizing the petroleum supply chain. The minister proposed assigning Oil Marketing Companies (OMCs) responsibility for implementing end-to-end digital systems to improve transparency, traceability, operational efficiency, and accountability throughout the sector.
Additionally, the committee examined the moratorium on new OMC licenses and its impact on competition, investment, and market dynamics.
Participants also agreed that the Inland Freight Equalization Margin (IFEM) pool requires a comprehensive review. The issue of a windfall tax was discussed, with the Finance Division, Federal Board of Revenue (FBR), and Petroleum Division tasked to present a detailed report at the next meeting.
The committee resolved to continue evaluating reform proposals and develop a comprehensive roadmap aimed at enhancing transparency, competition, efficiency, and consumer protection in Pakistan’s petroleum sector.
The meeting was attended by National Coordinator NCMC Lt. General Zafar Iqbal, Minister of State for Finance Bilal Azhar Kiyani, and other committee members.