The government is reportedly considering fixing petroleum product prices on a weekly basis due to the prevailing tense situation in the region, sources said on Thursday.
According to sources, multiple proposals are under discussion regarding a new mechanism for determining fuel prices every week instead of the current schedule.
Authorities are also reviewing a pricing method similar to the one adopted during the COVID-19 period.
Sources said the primary objective behind the proposed weekly pricing system is to prevent hoarding and market manipulation by dealers, particularly during periods of expected price increases.
Officials fear that anticipation of higher fuel prices could encourage dealers to stockpile petroleum products, creating artificial shortages in the market.
Sources further warned that if the regional situation remains tense petrol prices could rise by up to Rs20 per litre, while diesel prices may increase by as much as Rs45 per litre in the coming adjustments.
Discussions are ongoing and no final decision has yet been announced regarding the implementation of the weekly pricing mechanism.
In view of the deteriorating situation in the Middle East, oil companies across the country have set supply quotas for petrol pumps.
According to petroleum dealers, fuel is now being supplied to all petrol pumps based on their average sales over the past six months. Sources said rising global crude oil prices have increased fears of a significant hike in local petrol and diesel prices.
Sources added that, anticipating a possible price increase and higher profit margins petrol pumps have been placing large fuel orders. Even pumps with relatively low average sales over the last six months are reportedly demanding higher quantities.
Oil companies maintain that the quota system has been introduced to ensure uninterrupted fuel supply to all pumps and to prevent shortages.
Meanwhile, reports of potential price hikes have triggered a sharp increase in public purchasing of petrol and diesel across various cities.
Considering the seriousness of the situation petroleum dealers have called an emergency press conference scheduled to be held in Karachi within the next 24 hours, where important announcements are expected.
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