Pakistani Government Plans to Deregulate Petrol Prices– Here’s Why

The Pakistani government is considering deregulating petrol prices and transferring the authority for setting these prices, which is currently done on a fortnightly basis. This decision will remove the federal government’s role in price determination, with the Petroleum Minister planning a crucial meeting to manage the transition.

Despite the unpopularity of the move, experts praise the government’s decision, labeling it as progressive. They believe it will foster greater competition among oil marketing companies, ultimately benefiting consumers by encouraging competitive behavior among leading players and providing long-term relief.

Petrol Prices Deregulation

The change will be implemented gradually, with the Oil and Gas Regulatory Authority (OGRA) responsible for evaluating its impacts and developing a strategic framework. This framework will then be presented to the prime minister for final approval.

However, petroleum dealers have voiced concerns that this shift could lead to increased profiteering by oil marketing companies.

Additionally, the Oil Marketing Association of Pakistan (OMAP) and oil refineries have urged the government to address the foreign exchange losses impacting the industry, stressing the need for immediate recovery to ensure the industry’s stability and economic contribution.