ISLAMABAD: Adviser to the Finance Minister Khurram Shahzad has said the government is reviewing the potential benefits of introducing a daily fuel price adjustment mechanism, noting that the system is already in place in several countries.
Speaking to a private television channel, Shahzad said many countries revise fuel prices on a daily basis, which helps reduce speculation and uncertainty in the market.
He said the objective is to keep domestic fuel prices aligned with movements in the international oil market while carefully assessing the benefits and implications of such a system.
He said one of the government’s key policy objectives is to reduce its role in fuel price determination and allow the private sector to play a greater role, enabling the market to operate according to competitive principles.
Shahzad said fuel prices naturally fluctuate and cannot remain fixed. He warned that if the government artificially controls prices, suppliers may withhold supplies, potentially leading to shortages in the market.
He added that the government is considering policies aimed at promoting transparency, competition and a more efficient system for consumers.
However, he stressed that all aspects of any proposed pricing mechanism would be thoroughly evaluated before any decision is made.
