Govt 'plans' deregulation of petroleum product prices

ISLAMABAD: The federal government has planned to deregulate petroleum product prices, a move that has been met with resistance from the Pakistan Petroleum Dealers Association.

In a letter to Minister for Petroleum Musadik Malik, the association expressed concerns that deregulation would lead to an increase in the sale of smuggled Iranian oil and non-standard fuel in the country.

The association argued that deregulation would compromise the investments made by petroleum dealers, who have invested billions in the sector. They emphasized that any decision should be made in consultation with stakeholders, as was previously agreed upon.

Under the proposed plan, oil marketing companies (OMCs) would be allowed to sell fuel at competitive prices, enabling them to increase their market share. A price ceiling would be established to ensure price stability.

Additionally, the government plans to permit oil refineries to blend up to 5% ethanol in petroleum products to reduce fuel costs.

The Pakistan Petroleum Dealers Association has urged the minister to engage in talks with the association to address their concerns.

Earlier, Federal Minister for Petroleum Dr. Musadik Malik  categorically denied the reports of selling 15 per cent of Reko Diq shares to Saudi Arabia.

Talking to the media in Islamabad, Musadik Malik said that the federal cabinet has not approved the sale of a 15% stake in the Reko Diq mining project to Saudi Arabia, under an intergovernmental transaction agreement.

Petroleum Minister stressed that neither any state forum has approved the sale nor the deal has been finalized with Saudi Arabia yet, adding that talks with the Saudi government are ongoing in a positive manner.