Recommends to who?
But on the flip side of the argument, privatizing these mechanisms and having a free market requires that you have a strong regulator in place. In a country like Pakistan, that is seldom the case, hence the need to have a strong grip on affairs within the market itself, to prevent manipulation and price gouging.
Recommends to the Petroleum Ministry which is responsible for setting the fuel prices in the country.
Why do you think that a regulatory body is necessary? Had there been privately /foreign owned petroleum storage & distributing companies only; there was a strong possibility of a 'Cartel' arbitrarily fixing ex-pump selling price. In Pakistan largest market share is held by PSO, which is GOP owned. Even though private marketing companies can import /purchase petroleum products from any source whatsoever but they would have to compete with PSO ex-pump prices. Hence unless PSO joins the cartel, no nationwide price fixing is possible.
In UK there is no regulatory authority; it is the competition that sets the ex-pump selling price. In general retail outlets owned by the 'Super Markets' such as Tesco, ASDA etc are about 3 to 4 pence per litre cheaper. On the other hand the same companies sell at higher prices in rural area and at the motor way petrol stations.