Pump Owners to Decide Fuel Prices Next Year
Pakistan is targeting June 2027 to deregulate petrol prices and shift to a market-based pricing system, the Petroleum Pricing Committee … Read More The post Pump Owners to Decide Fuel Prices Next Year appeared first on ProPakistani .
The Petroleum Pricing Committee in Pakistan aims to deregulate petrol prices by June 2027, transitioning to a market-based pricing system. The committee, under Petroleum Minister Ali Pervaiz Malik, reviewed the current petroleum pricing structure and discussed measures to enhance price transparency and predictability. Gradual implementation of deregulation is planned to mitigate sudden price shocks for consumers.
The committee examined proposals for modifying the petrol pricing formula and settled on June 2027 as the tentative deadline for adopting competitive, market-driven fuel prices. For diesel, principles for government intervention during emergencies were approved, outlining specific triggers for major price shocks and corresponding response measures.
Additionally, the committee endorsed revisions to the methodology for calculating the Inland Freight Equalization Margin (IFEM). The Oil and Gas Regulatory Authority (OGRA) stated that the IFEM audit for fiscal year 2026 would conclude by the end of 2026. OGRA has been instructed to submit recommendations on the consolidation and performance of existing oil marketing companies (OMCs).
The committee also contemplated a petroleum price stabilization fund, drawing inspiration from international models. However, it emphasized that preserving adequate fuel reserves might be more appropriate once the petroleum market is entirely deregulated. A separate subcommittee will convene with the Federal Board of Revenue (FBR) chairman to assess potential changes to the taxation framework in response to evolving market dynamics.
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