Pakistan targets deregulating petrol prices by June next year

Business Recorder reported that Pakistan has put June 2027 forward as the timeline for freeing petrol prices from administrative control, moving them toward market-based pricing. The announcement followed a statement issued on Thursday by the Petroleum Pricing Committee, which described the step as part of a wider overhaul of the petroleum pricing framework. The approach is meant to be gradual, with fuel pricing made more transparent and predictable while consumers are shielded from undue volatility.

The committee, chaired by Federal Minister for Petroleum Ali Pervaiz Malik, met to review the pricing formula and endorsed steps to strengthen the existing mechanism. It intends to pass its conclusions to the premier shortly for review and sign-off. On diesel, members accepted guiding principles for rules-based action during emergencies, with price shock thresholds and corrective steps that may be used if needed.

OGRA has been directed to submit written recommendations on consolidating oil marketing companies and assessing their performance. Members noted that, given eventual full deregulation, keeping adequate fuel reserves is preferable to creating a price stabilisation fund. According to the report, a subcommittee led by Naeem Ghauri will meet the FBR chairman to examine whether the tax regime should be revised amid changing market conditions.