KARACHI: The Pakistan Petroleum Dealers Association (PPDA) said on Thursday that it supported the decision of the Prime Minister to end the government's intervention in the determination of oil prices.

The Oil and Gas Regulatory Authority (OGRA) should set petroleum product prices, not oil marketing companies (OMCs), it said.

OGRA is well suited to protect the interests of all stakeholders and consumers in a professional manner, said Hassan Shah, spokesperson for the PPDA.

Giving the authority to determine the oil price to OMCs is like throwing consumers to the wolves, he said.

The political government should stop setting the oil prices, as this will prevent it from facing public criticism for inflating the cost of oil in the country following an increase in its price on the international market.

The government also incurs losses due to fluctuations in oil prices; the only solution is for the government to completely end its intervention in this regard, he said.

The devaluation of the local currency, the appreciation of the dollar, or fluctuations in the price of oil on the global market will not affect the political government's reputation once its role in determining oil prices ends, he underlined.

He said that OGRA has the ability to determine oil prices in a professional manner, and petroleum dealers have no objection to it, although they have reservations about giving this authority to oil marketing companies.

The government should conduct a thorough study and evaluate the benefits and implications before making a decision.

He said that the OGRA should have the power to set the prices for ex-refineries, ex-companies, and ex-filling stations because this organisation will maintain equilibrium and prevent sector exploitation.

Hasan Shah said that making a hasty decision without consulting the representatives of more than 14,000 petrol pump owners, all oil refineries, oil marketing companies, especially PSOs, and oil tankers can lead to a major disaster.

Copyright Business Recorder, 2024