Islamabad: In a significant move towards reshaping the oil sector, the Petroleum Pricing Committee, led by Federal Minister for Petroleum Ali Pervaiz Malik, convened for its fifth meeting to review the current petroleum pricing mechanism. The committee, established by the Prime Minister, discussed key findings and recommendations from its sub-committees and external consultant KPMG, which compared regional pricing and taxation structures.
According to Press Information Department, the committee commended the adoption of a daily pricing formula aimed at enhancing transparency and reducing market volatility. Minister Malik stressed the importance of implementing a clear roadmap for the sector’s deregulation, complete with benchmarks to evaluate progress. The operational dashboard on the Oil and Gas Regulatory Authority’s website, which provides daily pricing information, was highlighted as a tool for improving public access to data.
The committee also examined the effects of strategic petroleum reserves and a proposed price stabilization fund on the market, discussing their potential to mitigate volatility and stabilize supplies. Malik underscored the need for Oil Marketing Companies to digitize the supply chain, aiming to boost transparency and accountability.
Discussions included the impact of a moratorium on new Oil Marketing Companies and its consequences for market competition and investment. Additionally, a comprehensive review of the Inland Freight Equalization Margin pool was deemed necessary. The committee also addressed the contentious issue of windfall tax, tasking the Finance Division, Federal Board of Revenue, and Petroleum Division with presenting a report on the matter in its next meeting.
The meeting concluded with a commitment to continue refining a comprehensive reform roadmap to promote transparency, competition, and consumer protection in the petroleum sector. The meeting was attended by National Coordinator NCMC Lt General Zafar Iqbal, Minister of State for Finance Bilal Azhar Kiyani, and other committee members.