ISLAMABAD: The government of Pakistan on Wednesday decided to regulate its responsibility to determine petroleum prices, instead opting to delegate the authority to oil marketing companies, local media reported.
Prime Minister Shehbaz Sharif has ordered the relevant authorities to end control over setting petrol prices, paving the way for a phased transfer of regulating authority to oil marketing companies.
After the prime minister’s directive, Petroleum Minister Musadik Malik has summoned an important meeting for Thursday to discuss the details of the plan.
The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been asked to prepare a report on the effects of deregulating prices and develop a framework to implement the decision.
The final framework for deregulating petroleum prices will be presented to the Prime Minister for final approval.
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Earlier in April, Petroleum dealers in Pakistan warned of closing down business as the government was reportedly working to deregulate prices of petroleum products.
Pakistan Petroleum Dealers Association (PPDA) Chairman Abdul Sami Khan in a statement, dismissed the likely move, saying that it will hike prices of petroleum products in far-flung areas.
According to the PPDA chief, the move to deregulate petroleum prices will cause skyrocketing inflation in the country.
Khan said that the petroleum dealers have been protesting against the move for years and the government has also committed that it will not take such a measure.
