KARACHI – Pakistan’s interim government has decided to revise petroleum prices weekly, ending the current fortnightly pricing mechanism.
Reports in local media said Oil and Gas Regulatory Authority (OGRA) takes weekly revisions in fuel prices under consideration to address challenges faced by the oil industry, particularly in mitigating inventory losses.
Before taking the major step, the caretaker government has sought recommendations from all stakeholders and the Petroleum Dealers Association.
In this regard, OGRA has sent letters to stakeholders for opinions, outlining the advantages and drawbacks of the weekly pricing mechanism.
The switch of price decision mechanism stemmed from downward revisions in petroleum product prices that caused inventory losses for the oil industry. The new system will fix occurrence of artificial shortages allegedly caused by dealers during price reviews.
After getting comments from all stakeholders, OGRA will submit recommendations to the Petroleum Division for review. Economic Coordination Committee (ECC) will make the final decision in this regard.
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