Today, there’s a big meeting to discuss whether oil marketing companies (OMCs) should have the power to set fuel prices. This comes after Prime Minister Shehbaz Sharif’s recent order for the Petroleum Ministry to finalize and present a plan for deregulating the petroleum sector.
Petroleum Minister Musadik Malik will lead the meeting. The plan involves handing over the responsibility of setting fuel prices to OMCs, with the Oil and Gas Regulatory Authority (OGRA) chairman, Masroor Khan, expected to brief on this proposal.
If approved, OMCs could change fuel prices daily. The government plans to keep the petroleum levy fixed at Rs80 and let OMCs handle the rest. Currently, the government compensates OMCs for currency exchange differences and refunds provincial sales tax on services. Last year, Rs65 billion was refunded to OMCs.
The Pakistan Petroleum Dealers Association (PPDA) supports the idea of reducing government control over oil prices but prefers that OGRA, not OMCs, sets these prices. PPDA spokesperson Hassan Shah believes OGRA can better protect consumer interests and worries that giving OMCs more power could harm the economy. Shah calls for a thorough review of the proposal’s impacts before making a final decision.
