PPDA urges Govt to raise dealers’ margin to 8%,seeks role in policy-making

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik has said that the government is moving towards a market-driven petroleum pricing system aimed at enhancing transparency, discouraging market manipulation, and protecting consumer interests.
The minister stated this while chairing a meeting with a delegation of the Pakistan Petroleum Dealers Association (PPDA), led by its Chief Adviser Malik Khuda Baksh, to discuss petroleum pricing reforms, deregulation, and issues concerning petroleum dealers.
The PPDA delegation appreciated the government’s effective handling of petroleum product supplies during the recent Strait of Hormuz crisis, commending the Ministry of Petroleum for ensuring uninterrupted fuel availability across the country despite regional uncertainties.
Malik Khuda Baksh noted that while several neighbouring countries faced law and order challenges due to fuel shortages, Pakistan successfully maintained smooth supplies through timely and proactive measures. He assured the minister of the association’s full support for the government’s policies.
Briefing the delegation, the minister highlighted the transition from weekly to daily petroleum price announcements, explaining that the new mechanism would be based on a seven-day rolling average of international prices. He said the previous weekly pricing system was also based on a seven-day average, and the new approach simply updates prices on a daily basis to better reflect global market trends.
He emphasized that periodic price announcements had increasingly led to market manipulation and hoarding, causing distortions. The shift to daily pricing, he added, would help curb such practices while ensuring a smoother and more transparent pricing regime. The PPDA expressed its support for the proposed mechanism.
The delegation, however, requested that petroleum dealers be taken on board during the formulation of rules and operational arrangements between Oil Marketing Companies (OMCs) and dealers. It also raised concerns over pending revisions in dealers’ margins and demanded an increase to 8 percent.
Responding to the concerns, the minister assured that the dealers’ input would be duly considered and progress would be made on the margin issue. He also arranged a meeting between PPDA representatives and the Oil and Gas Regulatory Authority (OGRA) to discuss the matter and other related concerns in detail.
Ali Pervaiz Malik appreciated the constructive engagement of the PPDA leadership and reaffirmed the government’s commitment to working closely with all stakeholders to build a transparent, competitive, and consumer-friendly petroleum market while safeguarding public interest.
The PPDA delegation included Malik Khuda Baksh, Raja Waseem Kayani, Chaudhry Zafar Elahi, Babar Ali Chaudhary, and Chaudhry Faisal Arif.