OGRA refutes reports of deregulation of fuel prices

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Friday refuted reports regarding deregulation of fuel prices, ARY News reported.

According to a statement issued here, OGRA has rejected the reports about deregulating petroleum prices, citing potential impacts on the oil industry and the public.

The authority has written a letter to oil refineries, stating that a draft of certain aspects of petroleum price deregulation has been prepared under the direction of the Prime Minister’s Office.

The OGRA letter emphasizes that the final decision on petroleum price deregulation rests with the federal government, and will be made after considering the perspectives of all stakeholders.

The government will take into account the potential effects on the oil industry and the public before making a decision, the letter stated.

This development came after the Pakistan Petroleum Dealers Association (PPDA) yesterday warned against deregulation of fuel prices.

Addressing a press conference in Karachi, Pakistan Petroleum Dealers Association, Abdul Sami Khan said deregulation of fuel prices will cause huge damage to the industry and the masses will be deprived of quality fuel products.

He said petrol and diesel would be sold at exorbitant rates in the far-flung areas after deregulation of the fuel prices. Deregulation of oil prices could plunge the nation into a state of hyperinflation and economic instability, he added.

Threatening a protest against the expected deregulation of fuel prices, Abdul Sami Khan vowed to challenge the decision in the courts.

The reaction of the Pakistan Petroleum Dealers Association came after, the OGRA proposed phase-wise deregulation of fuel prices in the country.