ISLAMABAD: A crucial meeting is set to take place on Thursday (today) at the Petroleum Division to finalise the framework for deregulating petroleum products’ prices. The Oil and Gas Regulatory Authority (OGRA) chairman has been asked to present an in-depth analysis of the potential implications and a roadmap for the proposed deregulation.

The government has been pursuing with the idea of deregulating fuel prices for several years, with an initial target date of November 1, 2022.

However, the plan was put on hold due to widespread opposition and concerns about the potential negative impact on consumers, especially the most vulnerable segments of society.

Govt plans to deregulate POL products’ market by 2027

The OGRA has been tasked with developing a comprehensive deregulation plan that includes measures to prevent excessive price fluctuations, ensure fair competition among oil marketing companies (OMCs), and safeguard consumer interests. The petroleum sector has been divided over the issue.

While the government believes deregulation will lead to market efficiency and attract foreign investment, industry stakeholders and consumer groups fear it could result in higher prices and increased economic hardship.

The meeting comes following a OGRA briefing to the Energy Ministry in April 2024, which raised concerns among local refineries about the complexity and potential risks of deregulation.

Copyright Business Recorder, 2024