Mansoor Khan, Chairman of the Oil and Gas Regulatory Authority (OGRA), announced that the government intends to deregulate petroleum prices in phases, with a collaborative approach involving all stakeholders. This decision comes in response to ongoing discussions regarding the deregulation of High-Speed Diesel (HSD) and petrol, addressing concerns and seeking consensus across the oil industry.
Speaking at OGRA’s headquarters in Islamabad, Khan emphasized the importance of engaging relevant stakeholders, including dealers and oil marketing companies (OMCs), before implementing any deregulation measures. The government’s move follows a directive from the Prime Minister’s Office to finalize a deregulation framework for the petroleum sector, amid public scrutiny over price revisions.
While the proposal for deregulation has faced opposition from refineries and petroleum dealers, who raised concerns about its potential impact on business and investments, OGRA aims to address these reservations through comprehensive engagement and dialogue. Khan noted that deregulation is a complex and challenging process, requiring careful consideration of all aspects before making a final decision.
The proposed deregulation framework empowers OMCs to set fuel prices based on market forces, with consumers near ports and refineries expected to benefit from lower transportation costs. However, concerns remain about the potential implications on local businesses and investments in the petroleum sector.
OGRA’s commitment to inclusive discussions and thorough analysis reflects a cautious approach towards deregulation, balancing economic considerations with the interests of stakeholders in the oil industry.
