Bi-weekly fuel price revision urged

KARACHI: Oil marketing companies (OMCs) and petroleum dealers have reiterated their demand of fortnightly price revision after continuous decline in fuel consumption.

“This would be structurally positive for the entire supply chain,” Petroleum Dealers Association President Abdul Sami Khan said. Although there is no lockdown; however, schools, colleges and universities are closed, while a ban is imposed on other public gatherings, including marriages, etc, as a precaution against the epidemic.

Khan said that there had been a decline of around 20 percent in fuel demand during the last few days, “while the demand is likely to decrease further, going forward,” The Oil Companies Advisory Committee (OCAC) had already advised the government to review petroleum prices on fortnightly basis instead of monthly basis.

In a letter to the petroleum secretary, OCAC said that due to the declining petroleum products prices in February and March 2020, the whole downstream oil industry was facing uncertainty and financial exposure.

Khan said that OMCs and petroleum dealers suffered losses last month due to declining international oil prices. “The demand is declining, which would result in further attrition of revenues. Fuel prices are revised on a daily basis in the world, and we endorse OMCs’ demand of fortnightly price review.”