The All Pakistan Petrol Pump Owners Association has rejected the government’s proposal to revise petroleum product prices on a daily basis and warned of possible action if its concerns are not addressed.
As per media reports, the association called for an immediate review of the proposed daily pricing mechanism, saying it was unacceptable to petrol pump owners.
The association said the existing weekly price adjustment system had already severely affected their business, adding that daily price revisions would further complicate stock management and financial planning.
Petrol pump owners also said they were not consulted before the proposal was made, stressing that all stakeholders should be taken into confidence before implementing such an important policy decision.
The association urged the government to reconsider the daily pricing mechanism, consult petrol pump owners, and formulate a balanced and practical policy. It also proposed that petroleum product prices should be revised at least on a monthly basis.
The association warned that it would announce its future course of action if its concerns were not addressed.
Govt’s proposal
The government is considering a proposal to revise petroleum product prices on a daily basis rather than weekly basis to minimize its role.
Under the proposed system, the Oil and Gas Regulatory Authority (Ogra) would be solely responsible for determining the prices, and the revised prices would take effect at 12 am on daily basis.
Under the proposed system, the government plans to create a fuel price stabilisation fund to reduce sudden changes in petrol and diesel prices.
If international oil prices fall sharply, the government may save part of the reduction instead of passing on the full benefit to consumers. The savings would be deposited into the stabilisation fund.
The fund would then be used when global oil prices rise. This would help the government keep domestic fuel prices from increasing sharply and provide relief to consumers.
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