Tentative deadline set to fully deregulate petrol pricing framework

Business Recorder reported that the Petroleum Division's Committee has set a tentative target of June 2027 for fully deregulating petrol pricing. According to a Petroleum Division statement issued on Thursday, the phased shift is intended to introduce competitive pricing while cushioning consumers against sharp market swings. The meeting was chaired by Federal Minister for Petroleum Ali Pervaiz Malik and focused on making fuel prices more transparent and predictable.

On the existing pricing mechanism, the committee reviewed the current IFEM system and agreed a revised methodology for IFEM calculation. OGRA gave an assurance that the FY26 IFEM audit will be finished before the close of CY26. For diesel, members approved guiding principles for rule-based action in emergencies, with specified thresholds for sudden price spikes and remedial steps. A final report will go to the Prime Minister for consideration and approval soon.

The committee also instructed OGRA to send written proposals on the consolidation and performance of existing OMCs. A price stabilisation fund subgroup was asked to refine its proposals, but the committee concluded that keeping adequate fuel reserves suits the eventual deregulation better than creating such a fund. A subcommittee headed by Naeem Ghauri will meet the FBR chairman to examine whether the tax regime needs review.