Islamabad – Pakistan fuel supply system is facing renewed uncertainty as the government considers major changes to the current weekly pricing mechanism for petroleum products. Officials say the review comes at a time of heightened volatility in global markets, driven by rising tensions around the strategically critical Strait of Hormuz.
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Sources from both government and industrial sectors indicate that the existing plate-based weekly pricing formula may be replaced with a new system based on average inventory costs. Under the proposed model, petroleum prices could be determined on a monthly or biweekly basis rather than weekly. The shift is aimed at making domestic fuel pricing more reflective of international market conditions and reducing abrupt fluctuations that affect consumers and industries alike.
A special committee, formed under the Prime Minister, is currently examining the proposal in detail. The committee includes key stakeholders who are playing a central role in consulting with industry representatives, economists, and market analysts to ensure the new system is both fair and practical.
Industry experts say that moving to an average cost-based pricing model could help stabilize the domestic fuel market, particularly during periods of global price spikes caused by geopolitical tensions or supply disruptions. However, they also caution that careful implementation will be essential to prevent sudden shocks to consumers and businesses.
The government has not yet announced when the proposed changes will be implemented, but stakeholders are closely monitoring developments as they could have significant economic implications for transport, manufacturing, and everyday fuel consumers. Meanwhile, the uncertainty in supply and pricing continues to challenge businesses and the public, who are already grappling with rising global energy costs.
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Authorities stress that the aim of the reform is to create a more predictable and transparent fuel pricing system that aligns with global trends while safeguarding the interests of both consumers and industries.