Oil refineries are advocating for a shift to weekly reviews of oil prices to align more closely with international market fluctuations and enhance supply planning efficiency. Currently, prices are adjusted every two weeks. Refineries have expressed dissatisfaction with the Oil and Gas Regulatory Authority’s handling of diesel procurement, citing abrupt meetings and unclear guidance. This lack of direction has led to uncertainties in diesel sales and supply planning. The refineries argue that consistent regulatory practices are needed, especially during market fluctuations, to avoid policy imbalances. They also call for separate handling of jet fuel imports, which should not be mixed with diesel imports unless necessary, to prevent procurement issues. Additionally, they highlight discrepancies in jet fuel pricing, which affect refinery profitability. To address these challenges, refineries urge the regulator to provide clear directives for diesel transactions and to review the pricing formula to reflect current market conditions. They advocate for a weekly pricing mechanism to better capture international price changes and ensure effective supply management.
Should oil prices be reviewed weekly?
