Govt to allow oil companies to set their own petrol prices

ISLAMABAD: In a signification move, the ruling coalition government has agreed to give a free hand to the oil industry to set petrol prices by implementing a deregulation mechanism, reported GTV News on Wednesday citing sources.

According to sources, Prime Minister Shehbaz Sharif has summoned a session tomorrow to mull over a plan regarding deregulation of petroleum prices.

Sources disclosed that the government has been facing criticism for not receiving the desired public appreciation when petrol prices decrease.

Consequently, the Ministry of Petroleum on instructions of Prime Minister Shehbaz Sharif has called an important meeting tomorrow to discuss the delegation of fuel price-setting authority to oil marketing companies.

Chairman of the Oil and Gas Regulatory Authority (OGRA) has been instructed to prepare a report on the effects of deregulating petroleum prices and to outline a plan of action, which will be presented to Prime Minister Shehbaz Sharif on Thursday.

However, concerns have been raised about the potential for oil marketing companies to engage in profiteering if given unchecked authority to set prices.

Notably, a close associate of President Asif Ali Zardari and a key figure in OGRA has been advocating for granting companies the authority to set prices.

It is worth mentioning that petroleum dealers have opposed the idea of granting oil marketing companies the authority to set prices.