The government is moving quickly to deregulate the prices of petroleum products to address concerns about rising fuel prices and the impact of smuggled oil products on the market.
The Petroleum Division told the Oil and Gas Regulatory Authority (OGRA) to figure out what would happen if they stop regulating gas and oil prices. They want this done in three days. They hope to make it seem like it’s the oil companies’ fault, not the government’s.
When regulations are removed, oil companies can decide how much to charge for petrol and diesel in various places. Right now, petrol prices can already be set by the companies legally, but the government still sets the price for kerosene.
Under the new framework, OGRA and the Competition Commission of Pakistan would play a larger role in ensuring product quality, availability, and competitive pricing to prevent market collusion.
The Oil Companies Advisory Council (OCAC) told the government that widespread smuggling is hurting both government income and local refineries. They’re worried it might stop investments in making refineries better for the environment.
