ISLAMABAD (Kashmir English): The government is reportedly considering fixing petrol prices on a weekly basis due to the prevailing tense situation in the region, sources said on Thursday.
According to sources, multiple proposals are under discussion regarding a new mechanism for determining fuel prices every week instead of the current schedule.
The authorities are conducting a review of a pricing method which they used during the COVID-19 period. Sources said the primary objective behind the proposed weekly pricing system is to prevent hoarding and market manipulation by dealers, particularly during periods of expected price increases.
Officials fear that anticipation of higher fuel prices could encourage dealers to stockpile petroleum products, which would create artificial shortages in the market. Sources further warned that if the regional situation remains tense petrol prices could rise by up to Rs20 per litre, while diesel prices may increase by as much as Rs45 per litre in the coming adjustments.
The implementation of the weekly pricing mechanism is still being discussed because no final decision has been announced yet. Oil companies nationwide established supply limits for petrol pumps because of the escalating situation in the Middle East.
Petroleum dealers report that petrol pumps now receive fuel deliveries according to their average sales from the past six months. Sources said rising global crude oil prices have increased fears of a significant hike in local petrol and diesel prices.
Sources reported that petrol pumps have been placing large fuel orders because they expect a price increase with better profit margins. Even pumps with relatively low average sales over the last six months are reportedly demanding higher quantities.
