RECORDER REPORT

ISLAMABAD: The Petroleum Division’s Committee set a tentative deadline of June 2027 to fully deregulate the petrol pricing framework.

The Petroleum Division’s Committee on Petroleum Pricing reviewed petrol pricing recommendations and set a target date of June 2027 to fully deregulate the market. The phased transition aims to introduce competitive pricing while shielding consumers from sharp market volatility, according to a statement issued by the Petroleum Division on Thursday.

Federal Minister for Petroleum Ali Pervaiz Malik chaired the meeting to review the petroleum pricing framework and deliberate on measures to make fuel pricing more transparent and predictable while protecting consumers from undue price volatility.

The Committee also reviewed the current IFEM mechanism and agreed to a revised methodology of IFEM calculation. OGRA assured IFEM audit for FY26 would be completed by the end of CY26.

The Committee agreed on a set of recommendations for strengthening the existing pricing mechanism and decided that its final report would be submitted to the Prime Minister for consideration and approval soon.

For diesel pricing, the Committee approved the guiding principles for possible rule-based intervention in case of an emergency situation with clearly defined price shock triggers and possible corrective measures.

The Committee further directed OGRA to submit written recommendations on consolidation & performance of existing OMCs, especially in terms of adoption of best practices & latest technologies.

The Committee reviewed the report of sub-committees on the price stabilization fund benchmarked against various successful and failed global models and directed the subgroup to further refine its proposals. The Committee, however, observed that in view of the ultimate deregulation of the market, maintaining adequate fuel reserves would be more appropriate than establishing a stabilisation fund.

The recommendations agreed by the Committee are aimed at bringing greater predictability and transparency in petroleum pricing, ensuring market efficiency and safeguarding consumers against abrupt price movements, while facilitating Pakistan’s gradual transition towards deregulation.

The subcommittee headed by Naeem Ghauri would 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.

The meeting was attended by other members of the committee, including National Coordinator NCMC, Zahid Mir and Naeem Ghauri, along with Representatives of OGRA, FBR, Finance Division, KPMG and officials of Petroleum Division.