The federal government has made a decisive move to transfer the authority of setting petroleum prices from state control to oil marketing companies, according to sources disclosed on Wednesday.
Insiders revealed that Prime Minister Shehbaz Sharif has directed the cessation of government involvement in determining petroleum prices, prompting Petroleum Minister Musadik Malik to convene a crucial meeting scheduled for tomorrow.
The government plans to gradually delegate pricing authority to oil marketing companies.
The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been assigned the task of assessing the impacts of deregulation on petroleum prices and developing a strategic framework.
The final deregulation framework will be submitted to the prime minister for approval.
Sources suggest that petroleum dealers have opposed the transfer of pricing authority to oil marketing companies, expressing concerns over potential profiteering.
Previously, the Oil Marketing Association of Pakistan (OMAP) had urged PM Shehbaz to intervene promptly to address foreign exchange losses in the petroleum industry.
OMAP Chairman Tariq Wazir Ali wrote to the prime minister highlighting unrecoverable exchange losses that had accumulated over time, emphasizing that swift action would protect the petroleum industry from further crises and ensure its continued contribution to the national economy.
Ali commended the government’s policies for steering the country toward economic stability and growth, noting that these efforts are crucial for various industries, including petroleum.
Earlier, oil refineries had also urged the government to fully recover actual currency exchange losses incurred.
