Pakistan is targeting June 2027 to deregulate petrol prices and shift to a market-based pricing system, the Petroleum Pricing Committee said on Thursday.
The committee under Petroleum Minister Ali Pervaiz Malik today reviewed the country’s petroleum pricing system and discussed measures to make fuel prices more transparent and predictable.
The proposed deregulation will be introduced gradually to limit the impact of sudden price shocks on consumers.
The committee reviewed recommendations for changing the petrol pricing formula and agreed on June 2027 as the tentative target for moving to competitive, market-driven prices.
It also decided to finalize its recommendations and submit a report to Prime Minister Shehbaz Sharif for approval.
For diesel, the committee approved principles for government intervention during emergencies. The proposed framework will include specific triggers for major price shocks and measures that can be taken in response.
The committee also approved changes to the methodology used to calculate the Inland Freight Equalization Margin (IFEM). The Oil and Gas Regulatory Authority (OGRA) said the IFEM audit for fiscal year 2026 would be completed by the end of 2026.
OGRA has also been directed to submit recommendations on the consolidation and performance of existing oil marketing companies (OMCs).
The committee reviewed proposals for a petroleum price stabilization fund based on international examples. However, it noted that maintaining sufficient fuel reserves could be more suitable once the petroleum market is fully deregulated.
A separate subcommittee will also meet with the Federal Board of Revenue (FBR) chairman to examine whether the taxation framework needs changes in response to evolving market conditions.
