Govt to Deregulate Petroleum Prices, Granting Oil Companies Pricing Power

The Pakistani government has decided to relinquish control over petroleum product prices, with Prime Minister Shehbaz Sharif ordering the removal of governmental authority in setting these prices.

In response to the Prime Minister’s directive, the Petroleum Minister has scheduled a critical meeting for Thursday to discuss the implications and next steps.

Prime Minister Sharif has tasked the Chairman of the Oil and Gas Regulatory Authority (OGRA) with evaluating the impact of price deregulation and creating an implementation framework. This framework will be presented to the Prime Minister for final approval.

The government plans to grant oil marketing companies the authority to set prices in a phased approach.

Prime Minister Sharif highlighted the criticism the government faces when prices rise, noting the lack of public appreciation when prices fall.

However, petroleum dealers have opposed this move, arguing that it could lead to unfair profiteering by oil marketing companies.