Daily petrol prices trigger Senate debate over tra…
Islamabad: Pakistan’s new daily petroleum pricing system came under serious discussion in the Senate as lawmakers questioned whether the mechanism is providing relief to consumers or creating new challenges for the public and fuel dealers.
The Senate Standing Committee on Petroleum reviewed the daily petrol price determination system and demanded clarity over why the government replaced the previous fortnightly price revision system with daily changes.
The committee questioned the reasons behind the new policy and asked whether frequent price adjustments were helping ordinary citizens or increasing uncertainty in the fuel market.
Federal Minister for Petroleum informed the committee that the government had removed political influence from the petroleum pricing process by giving the responsibility of setting prices to the Oil and Gas Regulatory Authority (OGRA), an independent regulator.
He said the new system was introduced to make petroleum price decisions more transparent and based on market conditions.
OGRA Chairman informed the committee that petrol prices are calculated through a seven day average of international Platts benchmark prices.
He explained that instead of directly passing sudden changes in international oil markets to consumers, the seven day average spreads the impact over time.
According to OGRA, the system helps reduce sudden price shocks, especially during international tensions and market uncertainty.
Officials said the daily pricing mechanism also aims to discourage people from creating artificial shortages or making unfair profits through speculation.
However, senators raised concerns about the effect of frequent price changes on citizens and businesses. The committee expressed concern over the high tax burden on petroleum products and questioned how increasing fuel costs affect the daily lives of ordinary people.
Representatives of the Petroleum Dealers Association informed the committee that frequent price revisions were creating operational difficulties for fuel dealers.
They said continuous price changes make business planning more difficult and require better coordination between authorities and dealers.
The committee directed OGRA to consult all stakeholders, including petroleum dealers, and prepare practical recommendations to address their concerns.
Members also stressed the need for greater use of technology in the petroleum supply chain to prevent fuel smuggling, adulteration and illegal storage.
The committee said a stronger digital monitoring system could improve transparency and ensure consumers receive better quality fuel.
Senator Umer Farooq chaired the meeting of the Senate Standing Committee on Petroleum, where members reviewed the new pricing system and related petroleum sector issues.
The committee emphasized that petroleum pricing directly affects every citizen because fuel costs influence transportation, business expenses and prices of daily goods.
Members said the government and regulators must ensure that any pricing system protects consumers while maintaining stability in the petroleum market.
The committee directed OGRA to continue reviewing the mechanism and ensure that the interests of consumers remain the top priority.
