Petrol price hike on cards as notification awaited

ISLAMABAD, July 17: The federal government has decided to increase the prices of petroleum products, with petrol likely to go up by Rs5 per litre and high-speed diesel by Rs30 per litre, ARY News reported on Friday, quoting sources.

The revised prices are expected to be notified shortly after formal approval.

The expected increase comes on the same day the government announced a new mechanism for daily pricing of petroleum products through the Oil and Gas Regulatory Authority (OGRA).

The move has already drawn criticism from both petrol pump owners and oil marketing companies (OMCs), who say they were not consulted before the decision.

The All Pakistan Petroleum Dealers Association rejected the proposed petroleum price deregulation policy, warning that it could disrupt fuel transportation, oil tankers and the existing pricing system. The association also asked the government to consult all stakeholders before finalising any new mechanism.

OMCs also expressed concerns over the proposed daily pricing model, calling it a major shift for the fuel retail sector. They said most companies are not ready to implement the system immediately.

The companies warned that daily price revisions could create problems in stock valuation, inventory management and cash flow. They also feared the new mechanism could affect dealers’ margins, create uncertainty in the market and leave consumers confused.