Pakistan authorities are weighing a weekly petrol price review mechanism amid regional tensions in the Middle East, which are raising concerns about supply disruptions and market volatility.
Officials are discussing proposals to shift petroleum product pricing to a weekly review model, similar to the approach used during the Covid-19 period, following reports of potential disruptions in the Strait of Hormuz.
The move, sources say, is aimed at stabilising the market and discouraging panic-driven behaviour in the fuel supply chain.
Pakistan Weekly Petrol Price Review: Why the Government Is Considering It
According to sources, the primary purpose of moving to weekly price adjustments is to prevent fuel dealers from hoarding, especially when price increases are expected.
Authorities fear retailers may stockpile fuel if they anticipate a large upward revision, creating artificial shortages and putting greater pressure on prices.
If tensions persist, sources say petrol prices could rise by up to Rs20 per litre, while diesel could increase by up to Rs45 per litre.
Read: Pakistan Fuel Reserves for 28 Days, Finance Minister Tells Senate Committee
Earlier, Finance Minister Muhammad Aurangzeb told the Senate Committee for Finance that Pakistan has petrol and diesel stocks for 28 days.
Briefing the committee, chaired by Senator Salim Mandviwala, Aurangzeb said the government is considering petroleum conservation measures similar to those implemented during the COVID pandemic.
He also vowed to make optimal use of local oil and gas reserves, saying there is no shortage of oil and gas in the country, and urged the public to adopt energy conservation measures.
The finance minister said the prime minister has formed a special committee to monitor petroleum products daily and added that Pakistan’s petroleum reserves could last up to the end of March, with key decisions to be taken urgently.
