Pump Owners to Decide Fuel Prices Next Year

Pakistan is targeting June 2027 to deregulate petrol rates and shift to a market-based pricing system, the Petroleum Pricing Committee stated on Thursday.

Key points

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• The committee under Petroleum Minister Ali Pervaiz Malik today reviewed the country's petroleum pricing system and discussed measures to create fuel costs more transparent and predictable.
• 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 rates.
• The committee additionally approved changes to the methodology employed to calculate the Inland Freight Equalization Margin (IFEM).
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Notably, the committee under Petroleum Minister Ali Pervaiz Malik today reviewed the country's petroleum pricing system and discussed measures to create fuel costs more transparent and predictable.

For context, the proposed deregulation will be introduced gradually to limit the impact of sudden cost shocks on consumers. Petrol Nears Rs. 350/Litre After Another Growth.

For context, 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 rates.

It additionally decided to finalize its recommendations and submit a report to Prime Minister Shehbaz Sharif for approval.

For diesel, the committee approved principles for administration intervention during emergencies. The proposed framework will include specific triggers for major cost shocks and measures that can be taken in response.

Meanwhile, the committee additionally approved changes to the methodology employed to calculate the Inland Freight Equalization Margin (IFEM). The Oil and Gas Regulatory Authority (OGRA) remarked the IFEM audit for fiscal year 2026 would be completed by the end of 2026.

OGRA has additionally been directed to submit recommendations on the consolidation and performance of existing oil marketing businesses (OMCs). Petrol, Diesel Sales Decline Sharply In August.

In practice, the committee reviewed proposals for a petroleum cost stabilization fund based on international examples. Nevertheless, it observed that maintaining sufficient fuel reserves could be more suitable once the petroleum market is fully deregulated.

For context, a separate subcommittee will additionally meet with the Federal Board of Revenue (FBR) chairman to examine whether the taxation framework needs changes in response to evolving market conditions. Stay Connected with ProPakistani.

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Taken together, the developments around pump Owners to Decide Fuel Prices Next Year point to a situation that is still moving, and the coming days should bring more clarity.