Govt forms committee to address oil tanker owners' concerns

• Committee to address freight rates, quotas issues: minister.
• Committee to present recommendations within one week.
• Minister says ships stranded in Bab el-Mandeb have departed.

ISLAMABAD: The federal government on Monday formed a committee to address issues raised by oil tanker owners, including concerns related to freight rates and quotas.

Speaking to the media in Islamabad, Petroleum Minister Ali Pervaiz Malik confirmed the development, saying the recent rise in fuel prices would begin easing in the coming days.

However, he said that it was the Oil and Gas Regulatory Authority's (Ogra) responsibility to determine petroleum prices under the prescribed formula.

According to the petroleum minister, ships stranded in the Bab el-Mandeb Strait have departed.

Malik's remarks came as the Petroleum Division confirmed that talks with a delegation of the Oil Tanker Contractors Association ended with an agreement to resolve outstanding issues through mutual consultation.

"Petroleum Minister Ali Pervaiz Malik has formed a high-level committee to resolve the issues of oil tanker contractors, which will present its recommendations within one week," according to a post on the Petroleum Division's X account.

Meanwhile, the petroleum minister said that the newly formed committee would examine issues concerning oil tanker freight rates and the quota system.

The development came days after the All Pakistan Petrol Pumps Owners Association's (APPPOA) announcement of a nationwide strike against the government's plan to revise petroleum product prices daily. The association later called off the protest after reaching an understanding with the federal government.

Speaking at a joint press conference with the petroleum minister on July 22, representatives of the petroleum sector had said they received assurances that their concerns would be addressed.

The dealers had said that the government committed to increasing petroleum dealers' margins and expressed confidence that the matter would be resolved within the next two weeks.

The federal government announced on July 17 that petroleum product prices would be reviewed daily under a new mechanism introduced in response to rising global oil prices.

Addressing a press conference alongside Information Minister Attaullah Tarar, the petroleum minister said that the decision was approved by Prime Minister Shehbaz Sharif and the federal cabinet.