LAHORE: While the prices of petroleum products are adjusted promptly, the cost of lubricants, including engine gear and brake oil, continues to rise without corresponding decreases, sparking concerns of market manipulation.
A recent review reveals that oil marketing companies, rather than OGRA, set the prices for these lubricants. Since 2014, when the Ministry of Petroleum transferred pricing authority from OGRA to these companies, they have been accused of exploiting their position to inflate prices, depriving the public of billions annually.
Statistics show that Pakistan consumes between 193 to 195 million liters of lubricants annually, with monthly usage exceeding 16 to 18 million liters. Despite fluctuating global oil prices, the cost of motorcycle engine oil has surged from Rs. 500 to Rs. 1,000 per liter, while car and truck engine gear and brake oil now range from Rs. 3,500 to Rs. 7,500 per liter.
Khawaja Atif, Secretary General of the Petroleum Dealers Association, criticized the unchecked power of oil marketing companies, alleging they raise prices arbitrarily and coerce petrol pump owners into stocking their lubricants. He called for regulation of lubricant prices to protect consumers from unfair pricing practices.
In response, Tariq Wazir Ali, Chairman of the Oil Marketing Companies Association, defended the pricing structure. He explained that lubricant prices are not directly tied to petroleum product prices due to the complex factors involved, including international market conditions, packaging, and processing costs.
Ali also refuted claims that petrol pump owners are forced to stock lubricants, asserting that the practice is part of the agreement with pump operators.
The debate continues as stakeholders push for more transparency and regulation in the lubricant pricing sector.
