Tentative deadline set to fully deregulate petrol pricing framework
ISLAMABAD: The Petroleum Division’s Committee set a tentative deadline of June 2027 to fully deregulate the petrol pricing framework. The Petroleum Division’s Committee on Petroleum Pricing reviewed petrol pricing recommendations and set a target date of June 2027 to fully deregulate the market. The phased transition aims to introduce competitive pricing while shielding consumers from sharp…
ISLAMABAD – The Petroleum Division Committee has set a tentative deadline of June 2027 for the full deregulation of the petrol pricing framework. During a meeting chaired by Federal Minister for Petroleum Ali Pervaiz Malik, the Committee reviewed petrol pricing recommendations and settled on June 2027 as the target date for deregulation.
The plan involves a phased transition to bring competitive pricing, while safeguarding consumers from sudden market fluctuations, according to a statement released by the Petroleum Division.
Federal Minister Malik led the discussion on refining the pricing framework, aiming to make fuel prices more transparent and predictable. The Committee also examined the current IFEM mechanism, agreeing to revise the methodology for IFEM calculation. OGRA assured that the IFEM audit for the fiscal year 2026 would be finalized by the end of the current year.
The Committee recommended several measures to strengthen the existing pricing mechanism, with a final report to be submitted to the Prime Minister for review and approval. For diesel pricing, the Committee established guiding principles for potential rule-based intervention during emergencies, including defined price shock triggers and corrective measures.
The Committee directed OGRA to submit written recommendations on the consolidation and performance of existing OMCs, focusing on adopting best practices and latest technologies. The Committee reviewed the sub-committee’s report on benchmarking the price stabilization fund against global models, instructing the subgroup to further enhance its proposals.
However, the Committee noted that in the context of eventual deregulation, maintaining adequate fuel reserves would be more advantageous than establishing a stabilization fund. The recommendations aim to increase predictability and transparency in petroleum pricing, ensure market efficiency, and protect consumers from abrupt price shifts while enabling Pakistan’s gradual shift towards deregulation.
A subcommittee, chaired by Naeem Ghauri, will meet with the Chairman of the Federal Board of Revenue to evaluate potential taxation regime adjustments in response to evolving market conditions. The meeting included representatives from OGRA, FBR, Finance Division, KPMG, and Petroleum Division officials.
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