Islamabad: The Petroleum Pricing Committee, constituted by Prime Minister Shehbaz Sharif, held its fifth meeting under the chairmanship of Federal Minister for Petroleum Ali Pervaiz Malik to review progress on the phased deregulation of Pakistan's oil sector.

Committee members appreciated the proposed daily petroleum pricing formula, describing the new pricing mechanism as a positive step towards greater transparency and reduced price volatility. Ali Pervaiz Malik directed that clear targets and milestones be established for the deregulation process.

The meeting also recommended assigning Oil Marketing Companies (OMCs) responsibility for end-to-end digitalisation of the petroleum supply chain. The Petroleum Minister informed participants that OGRA has activated a dashboard on its website displaying daily petroleum prices, the pricing formula and Platts data to improve transparency and public access to information.

The committee reviewed the potential impact of strategic petroleum reserves and a Price Stabilisation Fund on fuel prices. Officials observed that both measures could help reduce price fluctuations. Participants also examined the effects of the ban on establishing new Oil Marketing Companies on market competition, investment and the overall market structure.

The committee agreed that the freight margin pool also requires a comprehensive review. The Ministry of Finance was directed to present a report on the proposed windfall tax at the next meeting after consultation with the Federal Board of Revenue (FBR) and the Petroleum Division.

The Petroleum Pricing Committee will continue deliberations on the recommendations of its sub-committees and prepare a comprehensive reform roadmap aimed at enhancing transparency, competition, efficiency and consumer protection in the petroleum sector.