Pakistan has not yet ended daily changes in petroleum prices, but the government has assured petrol pump owners that steps will be taken to shift the pricing mechanism to a fortnightly basis.
The All Pakistan Petrol Pump Owners Association has urged the government to replace the existing system of daily price adjustments with a 15-day review mechanism, citing business difficulties faced by petrol pump operators.
The development comes as the government has also decided to amend the Petroleum Products Ordinance, 1961, with the primary objective of increasing the legal upper limit on the petroleum levy imposed on petrol and diesel.
The proposed amendment would give the government greater legal authority to increase the levy on petroleum products when required. However, raising the levy limit does not automatically mean that petrol prices will increase.
According to the All Pakistan Petrol Pump Owners Association, its delegation held a meeting with the Petroleum Secretary and Special Secretary Petroleum to discuss the impact of daily price changes on petrol pump businesses and the rights of operators.
During the meeting, the association called for petroleum prices to be revised every 15 days instead of being changed daily. It argued that frequent adjustments create business difficulties for petrol pump owners and make it harder to manage their operations.
The association said government officials acknowledged the business challenges faced by petrol pump operators and assured them that steps would be taken to shift the existing mechanism to a fortnightly basis as soon as possible.
How will raising the petroleum levy limit affect petrol prices?
The proposed amendment to the Petroleum Products Ordinance, 1961, aims to increase the maximum legal limit on the petroleum levy that the government can impose on petrol and diesel.
If the government subsequently increases the levy, it could put upward pressure on retail fuel prices, depending on how the additional cost is reflected in the pricing calculation.
However, increasing the legal ceiling alone would not necessarily result in an immediate increase in petrol or diesel prices. The actual impact would depend on the levy imposed by the government and other components of the petroleum pricing formula.
What did petrol pump owners demand?
The All Pakistan Petrol Pump Owners Association has called for petroleum prices to be revised every 15 days rather than daily. The association says a fortnightly mechanism would provide greater stability for petrol pump businesses and help operators manage their commercial affairs.
The association added that it would continue raising the concerns of petrol pump owners with the relevant authorities and pursuing measures to protect their business interests and legitimate rights.
For now, the shift to fortnightly price revisions remains subject to government action, while the proposed increase in the petroleum levy limit concerns the government’s legal authority to impose the levy.
