The Pakistan Petroleum Dealers Association (PPDA) has formally thrown its weight behind the government’s proposed daily petroleum pricing mechanism, but not without laying down its own terms — a hike in dealer margins to 8 percent and a direct role in shaping the operational rules governing their relationship with Oil Marketing Companies (OMCs).
The demands were tabled during a high-level meeting between Minister for Petroleum Ali Pervaiz Malik and a PPDA delegation led by Chief Adviser Malik Khuda Baksh. The association made it clear that while it supports the reform in principle, dealers must be consulted during the formulation of regulations that will define their working relationship with OMCs going forward.
In response, the minister assured the delegation that their recommendations would be taken seriously and confirmed that a follow-up meeting between the PPDA and the Oil and Gas Regulatory Authority (OGRA) has been scheduled for Tuesday to address dealer margins and other outstanding issues.
Malik explained that the proposed daily pricing mechanism would continue to rely on a seven-day rolling average of international petroleum prices — the same methodology underpinning the existing weekly pricing system. The shift to daily adjustments, he argued, would enhance transparency, better reflect global market movements, and help curb hoarding and market distortions.
The PPDA also commended the government’s handling of fuel supplies during the recent Strait of Hormuz crisis, noting that Pakistan maintained uninterrupted petroleum availability despite regional disruptions and supply concerns. The association credited timely government intervention for keeping fuel flowing while several neighboring countries grappled with shortages.
The minister thanked the PPDA leadership for backing the government’s reform agenda and reiterated 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.
