Jam for mechanism to ensure immediate impact of fuel price cuts

ISLAMABAD: Federal Minister for Commerce Jam Kamal Khan on Saturday called for a transparent and efficient mechanism to ensure that reductions in fuel prices are immediately reflected in the prices of essential commodities and daily-use items. Speaking to the media outside Parliament House, the minister highlighted the importance of technology and the role of local administrations in this regard. He expressed the confidence that provincial governments could implement technology-based systems to provide immediate relief to the public by ensuring prompt adjustments in commodity prices. Responding to public concerns over delays in fuel price reductions at retail outlets, Jam Kamal explained that oil marketing companies and dealers often hold stocks purchased at higher prices, making it difficult to reduce prices immediately without incurring losses. “If retailers have been purchasing fuel at higher rates over the previous 15 to 20 days, they cannot immediately reduce prices the very next day, ” he said, adding that some adjustment period was unavoidable. The minister emphasized that the pricing mechanism should be robust, transparent and free of flaws to ensure consumers receive the full benefit of fuel price reductions as quickly as possible. He added that while improvements had been made, further reforms were needed to strengthen the system and enhance price monitoring.

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