ISLAMABAD: The government is targeting June 2027 to deregulate petrol prices as part of a broader overhaul of the petroleum pricing framework, the Petroleum Pricing Committee said Thursday.
The committee, chaired by Federal Minister for Petroleum Ali Pervaiz Malik, met to review the existing pricing structure and discuss measures aimed at making fuel prices more transparent and predictable while shielding consumers from excessive volatility, according to an official statement.
The committee reviewed recommendations for revising the petrol pricing formula and set the June 2027 target to ensure a gradual shift toward competitive, market-based pricing, the statement said.
Members agreed on a series of recommendations to strengthen the current pricing mechanism and decided to submit a final report to the prime minister soon for consideration and approval.
For diesel, the committee approved guiding principles for potential rules-based intervention in emergencies, with clearly defined price shock triggers and possible corrective actions.
The committee also reviewed the current Inland Freight Equalization Margin mechanism and agreed to a revised methodology for its calculation. The Oil and Gas Regulatory Authority assured the committee that the IFEM audit for fiscal year 2026 would be completed by the end of calendar year 2026.
OGRA was directed to submit written recommendations on the consolidation and performance of existing oil marketing companies.
The committee reviewed a report from subcommittees on a proposed price stabilization fund, benchmarked against various global models, and directed the subgroup to further refine its proposals. However, the committee observed that, given the eventual deregulation of the market, maintaining adequate fuel reserves would be more appropriate than establishing a stabilization fund.
A subcommittee led by Naeem Ghauri is scheduled to meet with the chairman of the Federal Board of Revenue to assess whether the taxation regime needs to be reviewed in light of changing market conditions, according to committee officials.
