Government all set to deregulate petrol prices in Pakistan

ISLAMABAD: The federal government has decided to transfer the authority of setting petroleum prices from the state to oil marketing companies, according to sources disclosed on Wednesday.

Insiders revealed that Prime Minister Shehbaz Sharif has directed the cessation of the government’s role in determining petroleum prices, prompting Petroleum Minister Musadik Malik to convene a crucial meeting scheduled for tomorrow.

The government plans to phase in the delegation of pricing authority to oil marketing companies.

The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been assigned the task of evaluating the impacts of deregulating petroleum prices and developing a strategic framework. The final deregulation framework will be submitted to the prime minister for approval.

Sources suggest that petroleum dealers have expressed opposition to granting pricing authority to oil marketing companies, citing concerns about potential profiteering.

Previously, the Oil Marketing Association of Pakistan (OMAP) had appealed to PM Shehbaz to intervene urgently and facilitate the recovery of foreign exchange losses in the petroleum industry.

OMAP Chairman Tariq Wazir Ali had written a letter to the prime minister highlighting the long-pending foreign exchange losses of the petroleum industry and emphasized that prompt action would help protect the industry from further crises and ensure its continued contribution to the national economy.

He commended the government’s policies for steering the country towards economic stability and growth, noting that these efforts were a source of hope for many industries, including the petroleum sector.

Earlier, oil refineries had also urged the government to fully recover the actual currency exchange losses.