Transjakarta targets June 2027 launch for Seribu Islands sea transport

The government aims to deregulate petrol prices by June 2027 as part of a comprehensive overhaul of the petroleum pricing system, according to the Petroleum Pricing Committee. This reform seeks to shift towards market-based pricing, enhance transparency, and predictability in fuel costs, while shielding consumers from excessive price fluctuations.

The Committee on Petroleum Pricing, led by Federal Minister for Petroleum Ali Pervaiz Malik, convened to evaluate the current petroleum pricing framework and deliberate on measures to streamline fuel pricing. Recommendations for the petrol pricing formula were reviewed, and a target date of June 2027 was set for petrol deregulation, ensuring a phased transition to competitive, market-driven pricing.

The committee also agreed on steps to reinforce the existing pricing mechanism and intends to submit its final report to the Prime Minister for review and approval. For diesel prices, guidelines were established for potential rules-based intervention in emergencies, with defined triggers and corrective measures. The committee examined the current Indian Fuel Efficiency Mechanism (IFEM) and endorsed a revised calculation approach.

OGRA pledged to finalize the IFEM audit for FY26 by the conclusion of CY26. Additionally, the committee tasked OGRA with providing written recommendations on consolidating and assessing the performance of existing Oil Marketing Companies (OMCs). The committee scrutinized a report from subcommittees on a benchmarked price stabilization fund against various global models and instructed the subgroup to further refine its proposals.

However, the committee emphasized that maintaining sufficient fuel reserves would be preferable to establishing a stabilization fund amid deregulation. A subcommittee chaired by Naeem Ghauri was scheduled to meet with the Chairman of the Federal Board of Revenue (FBR) to assess whether the taxation framework requires revision, considering evolving market dynamics.