The federal government has made a decision to shift the authority to determine petroleum prices from the state to oil marketing companies, according to sources disclosed on Wednesday.
Sources revealed that Prime Minister Shehbaz Sharif has directed the cessation of the government’s involvement in setting petroleum prices, prompting Petroleum Minister Musadik Malik to convene a crucial meeting scheduled for tomorrow.
Plans are underway to gradually transfer pricing authority to oil marketing companies in phases.
The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been tasked with assessing the implications of deregulating petroleum prices and formulating a strategic framework.
The finalized deregulation framework will be presented to the prime minister for approval.
Sources suggest that petroleum dealers have expressed opposition to granting pricing authority to oil marketing companies, citing concerns about potential profiteering.
Earlier, the Oil Marketing Association of Pakistan (OMAP) had urged PM Shehbaz to intervene promptly to address foreign exchange losses suffered by the petroleum industry.
OMAP Chairman Tariq Wazir Ali wrote a letter to the prime minister highlighting the industry’s unrecoverable exchange losses, emphasizing that swift action would protect the petroleum sector from further crises and ensure its continued contribution to the national economy.
He commended the government’s policies for steering the country towards economic stability and growth, noting that these efforts provide optimism for various industries, including the petroleum sector.
Previously, oil refineries had also called on the government to fully reimburse actual currency exchange losses.
