The federal government has decided to transfer the authority to set petroleum prices from the state to oil marketing companies, sources revealed on Wednesday.
This move comes under the direction of Prime Minister Shehbaz Sharif, who has instructed the termination of the government’s role in price determination.
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The government is preparing to delegate the pricing authority to oil marketing companies in phases.
The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been tasked with assessing the impacts of deregulating petroleum prices and developing a strategic framework.
The final framework for transferring the price-setting power to oil marketing companies will be presented to the Prime Minister for approval.
Despite the government’s push, the move has faced opposition from petroleum dealers. They argue that granting oil marketing companies unrestricted power could lead to unfair profiteering, potentially burdening consumers with higher prices.
