[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]In Karachi, Pakistan’s interim government has opted to transition from the current fortnightly pricing mechanism to weekly revisions of petroleum prices. Reports in local media indicate that the decision aims to address challenges faced by the oil industry, particularly in managing inventory losses.
To facilitate this significant change, the caretaker government has solicited recommendations from all stakeholders, including the Petroleum Dealers Association. The Oil and Gas Regulatory Authority (OGRA) has sent letters to stakeholders, seeking their opinions on the advantages and drawbacks of the proposed weekly pricing mechanism.
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The decision to switch the pricing mechanism arises from concerns about inventory losses in the oil industry due to downward revisions in petroleum product prices. The new system aims to curb the occurrence of alleged artificial shortages created by dealers during price reviews.
After collecting input from stakeholders, OGRA will submit recommendations to the Petroleum Division for review. The final decision on this matter will be made by the Economic Coordination Committee (ECC).[/vc_column_text][/vc_column][/vc_row]
