Islamabad, 30 July 2026(Ghufran): The fifth meeting of the Committee constituted by the Prime Minister to review Pakistan’s petroleum pricing mechanism was held today under the chairmanship of Federal Minister for Petroleum, Ali Pervaiz Malik. During the meeting, the sub-committees presented their findings and recommendations on various aspects of the petroleum pricing mechanism. KPMG also delivered a comparative analysis of petroleum pricing and taxation structures across the region.
The Committee appreciated the proposed daily pricing formula and the measures introduced to enhance transparency and reduce price volatility under the new petroleum pricing mechanism. Addressing the meeting, Federal Minister Ali Pervaiz Malik emphasized that deregulation of the petroleum sector should be implemented through a clear, measurable roadmap with defined benchmarks and milestones to monitor progress and ensure the achievement of intended reform objectives. The Committee was informed that the dashboard on the Oil and Gas Regulatory Authority (OGRA) website is now operational, providing the public with daily petroleum product prices, the applicable pricing formula, and relevant Platts data. The initiative is expected to significantly improve transparency and public access to pricing information.
Members also reviewed the potential role of strategic petroleum reserves and a proposed Price Stabilization Fund in mitigating market volatility and ensuring the stability of petroleum supplies and prices. The Minister stressed that Oil Marketing Companies (OMCs) should be made responsible for end-to-end digitization of the petroleum supply chain to enhance transparency, traceability, operational efficiency, and accountability throughout the sector.
The Committee further deliberated on the moratorium on the establishment of new Oil Marketing Companies and its implications for market competition, investment, and industry structure. It was also agreed that the Inland Freight Equalization Margin (IFEM) Pool requires a comprehensive review. The issue of a windfall tax was also discussed. It was decided that the Finance Division, in consultation with the Federal Board of Revenue (FBR) and the Petroleum Division, will present a detailed report on the matter during the Committee’s next meeting.
The Committee resolved to continue examining the recommendations of its sub-committees and to develop a comprehensive roadmap for petroleum sector reforms aimed at promoting transparency, competition, efficiency, and consumer protection. The meeting was attended by National Coordinator NCMC, Lieutenant General Zafar Iqbal, Minister of State for Finance Bilal Azhar Kiyani, and other members of the Committee.