The federal government plans to deregulate petroleum prices gradually and only after taking all dealers and Oil Marketing Companies (OMCs) into confidence, Chairman Oil and Gas Regulatory Authority (OGRA) Mansoor Khan told reporters on Tuessday.
This move follows last month’s request from the Petroleum division to OGRA for analysis and implications of deregulating petroleum products.
While deregulation has faced opposition from refineries and petroleum dealers, it would essentially allow oil companies to set their own prices for MS petrol and high-speed diesel (HSD) across different cities and towns. While legally petroleum prices are already deregulated, kerosene prices are the only ones officially set by the government.
The OGRA chairman acknowledged the complexity of the entire deregulation process and pledged engagement with all segments of the industry before making a decision.
