Govt Moves to Deregulate Petroleum Prices

The government is taking swift action to deregulate the rising petroleum prices and the detrimental effects of smuggled oil products on the market.

The Petroleum Division has instructed the Oil and Gas Regulatory Authority (OGRA) to provide a comprehensive analysis and implications of deregulate petroleum products prices within a tight deadline of three days.

If implemented, the deregulation would essentially allow oil companies to set their own prices for Motor Spirit (MS) petrol and High-Speed Diesel (HSD) across different cities and towns.

While petroleum prices are already deregulated legally, kerosene prices are the only ones officially set by the government.

Under the new framework, OGRA and the Competition Commission of Pakistan would play a more significant role in ensuring product quality, availability, and competitive pricing to prevent market collusion.

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This move aims to shift the criticism from the government to oil marketing companies and address the concerns raised by the Oil Companies Advisory Council (OCAC) about the rampant smuggling of oil products.

The OCAC recently warned the federal government about the detrimental effects of smuggling on government revenue and local refineries, which could jeopardize planned investments in refinery expansion and upgrading projects aimed at meeting environment-friendly specifications.