Petroleum Dealers Demand Higher Margins as Govt Weighs Daily Pricing

The Pakistan Petroleum Dealers Association (PPDA) endorsed the government’s proposed daily petroleum pricing mechanism and pledged its support for the reform while urging authorities to increase dealers’ margins to 8 percent and involve them in drafting operational rules with Oil Marketing Companies (OMCs).

The demands were raised during a meeting between Minister for Petroleum Ali Pervaiz Malik and a PPDA delegation led by Chief Adviser Malik Khuda Baksh. The delegation also requested that petroleum dealers be consulted during the formulation of regulations governing their relationship with OMCs.

Responding to the delegation, the minister assured them that their recommendations would be considered and confirmed that a meeting between the PPDA and the Oil and Gas Regulatory Authority (Ogra) has been scheduled for Tuesday to discuss dealer margins and other outstanding issues.

During the meeting, Malik said the proposed daily pricing mechanism would continue to be based on a seven day rolling average of international petroleum prices, similar to the methodology used under the existing weekly pricing system. However, daily price adjustments would improve transparency, better reflect global market movements, and discourage hoarding and market distortions.

The PPDA also praised the government’s handling of fuel supplies during the Strait of Hormuz crisis, saying Pakistan maintained uninterrupted petroleum availability despite regional disruptions and supply concerns. The association said timely government measures ensured smooth fuel supplies while several neighboring countries faced shortages.

The minister thanked the PPDA leadership for supporting the government’s reform agenda, reiterating its commitment to building a transparent, competitive, and consumer friendly petroleum market. The PPDA delegation included Chief Adviser Malik Khuda Baksh, Raja Waseem Kayani, Chaudhry Zafar Elahi, Babar Ali Chaudhary, and Chaudhry Faisal Arif.