Govt likely to allow petrol stations to set their own prices

20
17315

As consumers across the country face difficulties due to petrol shortage, the government is currently contemplating completely deregulating pricing and marketing of petrol. 

According to a report published in Dawn,  the government is considering doing away with uniform pricing of petrol and deregulating it in line with other petroleum products like HOBC which are already deregulated. 

Recently OMC’s have come under severe criticism for their alleged collusive behavior that has seen the price of hi-octane blending component (HOBC), to increase to Rs148-160 per litre. 

While the government slashed petrol prices to Rs74 per litre in line with the decrease in international oil prices, no such reduction was seen in the price of HOBC. 

According to the report, the government has also decided to deregulate the Inland Freight Equalisation Margin (IFEM) that currently ensures uniform prices throughout the country. As a result, consumers that are close to ports and refineries will be able to buy petroleum products at a cheaper price that may differ anywhere from Rs1 to Rs5 depending on the transportation cost.

Earlier, on June 4, the Competition Commission of Pakistan (CCP) had taken notice of public concerns and complaints about the shortage of petroleum products in the country and had initiated an inquiry to see whether such a shortage is the result of any anti-competitive activity.

The CCP’s inquiry will determine the possibility of the existence of any anti-competitive practices causing the shortage of fuel in the country and the undertakings involved in it.

The inquiry will further examine why the impact of the reduction in the prices of oil have not resulted in the corresponding reduction in the prices of the lubricants and other oil-based products, including the prices of hi-octane, which are primarily deregulated products.

Similarly, the Oil and Gas Regulatory Authority (OGRA) had also expressed its reservations last week regarding high prices of HOBC and had asked OMC’s to set prices at reasonable levels keeping in view the interests of the consumers. 

 

20 COMMENTS

  1. Great work, by allowing companies to set fuel prices at their own how will govt control inflation. further like steel mill dissolve OGRA and other petroleum ministries why we need those highly paid lame departments if crisis is still prevailing. do ministers in govt have a brain in their heads?

  2. Every business and mafia has its own time. Petrol mafia time has gone now. With the introduction of EV policies and green energy facilities, very soon this petrol mafia would be closing down their stations like CNG pumps.
    Whereas Govt is not governing at all which is its basic duty.
    We have to do our job right atleast whatever we are doing and pray to Allah for a better peaceful world for our children

    • If the petrol maifa fix their own price floar mills onwer fix there onw pric so why we pay texes. if the governament control nothing so why we need the governament army police we pay them more than they doing send them all to home we dont need any more these maifa

      • What the hell is going on
        Why govt didn’t cancel the license of petrol stations and took charge by herself .
        Even according to govt representaters all yhe armed forces and govt are at one page then why imran is behaving like a monkey why he is so much afraid of taking harsh decisions.

  3. In view of the present and prevailing circumstances and in the amid of Covid 19, the Government should reduce the petroleum prices to its lowest as the consumption has already reduced to it’s maximum. Regular petrol and HOBC must be regulated @ Rs.50 and 60 respectively not more than this. Let see, what happens in very coming future, the government may increase or decrease the prices according to the situation.

  4. Who is petrol mafia, who is sugar mafia, who is flour mafia, who is cooking oil mafia, education Mafia, health mafia and the list goes on… Did we ever realised who these mafia’a are? The ones sitting in seneats, assembly and big chairs? the ones built the empires in UK, USA, Saudi etc etc. The ones who looted us since the time this country came into being. The ones who should be hanged but freed to live and rule turn by turn. Why we being a nation sold our selves to these demons just for the sake of electricity connection, gas connection, false contracts, corruption and brought devastation to this beautiful country. Nothing will ever change ever until we change ourselves. What a pity that a nation sleeps when their daughters and sisters are raped. What a pity that this nation sleeps while oxygen masks removed from the mouths of admitted patients in hospital by the hands of those who fight for law. How can we aspect betterment when we make thief’s lions and tigers and keep the Corrupt Zinda? Wake up wakeup or you will be skiined one day!

  5. IK. If this is what a naya Pakistan has to be where people and institutions are free to make decisions to raise price rather than following govt order than you don’t deserve to be on the seat as its clearly shows failure of your governance. Today you are giving them free hand to raise fuel price than tomorrow you will also allow flour Mills, sugar Mills, gee Mills and schools, colleges etc to raise their prices.

  6. This government is a total failure. They are trying to change history. PM doesn’t know what’s going on in the markets. Everything like vegetables, fruits rather almost every eatable item is much much expensive as compared to 2 years ago. They can’t implement the laws. Kaput government.

  7. MAFIAS. ??? Judiciary asked Can anyone or PM give assurance that Nawaz will be alive till tomorrow. ? PM replied and rightly replied I cannot guaranttee my own life for a minute how can I guaranttee anyone elses life. So bail was given. And Nawaz left to UK. Court not taken any guaranttee of the bail even. Can anyone else do this???? No. So this is called clear crystal clear MAFIA. No need to go and find out. It happens in front of everybody.

  8. Sugar Mafia Wheat Mafia Oil Mafia Land Mafia all mafia r fabricated during last 50 years. Even Govt itself were big mafias. Lets see present Govt actions. How they can reverse Mafias. But Mafias are surely not produced in two years. They were made in last fifty years.

  9. As per my understanding this govt is completely failed they can’t do anything or control anything. They are just fine in social media rest they are unable to govern. The govt has no writ. All organisation are about to collapsed. The blunder of Pakistani people who vote for this pig-ignorant person. Unfortunately, the representative of people I mean elected people are out of decision only selected people are making decisions who doesn’t know the situation of a common person. May Allah protect our Pakistan.

  10. Another foolish move by a foolish and inept government. Did not Imran khan swear he would fight and abolish the various mafia’s active in this country.
    Seems to me that he has joined them since he cannot beat them.

  11. It will b disastrous to authorize the pumps. Public will suffer at the hands of frofiteers . Will give to un checked price hikes ….

  12. What the hell is going on
    Why govt didn’t cancel the license of petrol stations and took charge by herself .
    Even according to govt representaters all yhe armed forces and govt are at one page then why imran is behaving like a monkey why he is so much afraid of taking harsh decisions.

  13. Mr imran khan dont know how to deal with these situation. His cabinet ministers are making policies for their own benefits and for their friends. It doesnt make any sense deregulating oil prices by the end consumer will be effected. Similarly other ministeries will also start deregulating their prices which will i think worse the situation even more.

  14. Good decision, in free market economy, prices are set by the mechanism of demand & supply. Government should not involve in price setting on political basis.

LEAVE A REPLY

Please enter your comment!
Please enter your name here