Govt sets Jun '27 target for petrol deregulation

The Express Tribune reported that the Committee on Petroleum Pricing recommended June 2027 as the target date for full petrol price deregulation, a move it said would make fuel pricing more transparent and predictable. Federal Minister for Petroleum Ali Pervaiz Malik led the panel, which examined the framework with the aim of shielding consumers from sharp price swings while keeping markets efficient.

For diesel, the committee endorsed a set of principles that could guide rules-based intervention during emergencies, with explicit thresholds for price shocks and remedial steps. The committee also agreed on a revised method for calculating the IFEM mechanism, while the Oil and Gas Regulatory Authority (OGRA) assured it that the audit of IFEM for FY26 will finish before CY26 ends.

The committee asked OGRA to submit written suggestions on consolidating and improving the performance of oil marketing companies, including adopting best practices and modern technology. Regarding the price stabilisation fund, members observed that keeping enough fuel in reserve suits the final goal of deregulation better than creating one, and the sub-group was asked to refine its proposals further. A subcommittee led by Naeem Ghauri will meet the FBR chairman to examine whether the tax regime needs revision given shifting market conditions.