Government to deregulate petroleum prices, taking all stakeholders into confidence

KARACHI: The government will deregulate petroleum prices in phases, taking all stakeholders into confidence, the chairman of the Oil and Gas Regulatory Authority (OGRA) said on Tuesday.

“The deregulation of petroleum prices will be implemented gradually,” OGRA Chairman Mansoor Khan stated at a media gathering at the organization’s Islamabad head office.

When asked when the deregulation of petrol and High-Speed Diesel (HSD) would take place after the government announced their deregulation, Khan responded,

“The relevant stakeholders, from dealers to oil marketing companies (OMCs), will be taken on board before deregulating petroleum products.”

Last month, the Petroleum division had sought input from OGRA on the analysis and implications of the deregulation of petroleum products, following instructions from the Prime Minister’s Office for the urgent finalization of a “deregulation framework for the petroleum sector,” as the government has been continuously facing criticism for revisions in their prices, which have mostly shot up in the last two years.

The refineries and fuel merchants opposed the proposed deregulation.

The goal of the deregulation proposal is to give oil marketing corporations more authority to set fuel prices based on different market dynamics.

Due to transportation costs, local customers who purchase petrol and diesel from locations near ports and refineries would receive comparatively cheaper goods.

The OGRA chairman acknowledged the complexity of the entire deregulation process and pledged engagement with all segments of the industry before making a decision.