Govt to empower oil industry to regulate petroleum prices

ISLAMABAD: The Pakistan government decided on Wednesday to regulating its responsibility of setting petroleum prices, instead opting to delegate the authority to oil marketing companies, ARY News reported.  

Prime Minister Shehbaz Sharif has directed the authorities concerned to end its control over price determination, paving the way for a phased transfer of regulating power to oil marketing companies.

Following the prime minister’s directive, Petroleum Minister Musadik Malik has summoned an important meeting for tomorrow to discuss the details of the plan.

The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been tasked to prepare a report on the effects of deregulating prices and develop a framework for implementation.

The final framework for deregulating petroleum prices will be presented to the Prime Minister for approval.

Earlier in April, Petroleum dealers in Pakistan warned of shutting down business as the government was reportedly working to deregulate petroleum products’ prices.

In a statement, Pakistan Petroleum Dealers Association (PPDA) Chairman Abdul Sami Khan rejected the likely move, saying that it will result in hiked prices of petroleum products in far-flung areas.

According to the PPDA chief, the move to deregulate petroleum prices will bring skyrocketing inflation in the country.

Khan said that the petroleum dealers have been urging against the move for years and the government has also promised that it will not take such a measure.