Petroleum pricing panel backs phased deregulation

July 30, 2026 (MLN): Pakistan is moving a step closer to deregulating its petroleum sector on Thursday as a government committee endorsed a phased roadmap for market reforms, while also reviewing measures to enhance pricing transparency, digitize the fuel supply chain and strengthen competition in the oil market.

The fifth meeting of the Prime Minister's Committee on petroleum pricing reforms, chaired by Federal Minister for Petroleum Ali Pervaiz Malik, reviewed recommendations from sub-committees on the country's petroleum pricing mechanism and discussed a phased approach to deregulating the downstream oil sector.

The committee welcomed the proposed daily petroleum pricing formula and measures aimed at improving transparency and reducing price volatility.

It was informed that a new dashboard on the Oil and Gas Regulatory Authority (OGRA) website is now operational, providing daily petroleum product prices, the applicable pricing formula and relevant Platts benchmark data to improve public access to pricing information.

Ali Pervaiz Malik stressed that deregulation should proceed through a clearly defined and measurable roadmap, with specific milestones to assess progress toward the government's reform objectives.

The meeting also reviewed proposals for establishing strategic petroleum reserves and a price stabilization fund to help mitigate market volatility and ensure stable fuel supplies.

The petroleum minister further directed that Oil Marketing Companies (OMCs) should be made responsible for end-to-end digitization of the petroleum supply chain to improve transparency, traceability, efficiency and accountability.

The committee also deliberated on the moratorium on new OMC licences and its implications for competition, investment and market structure, concluding that the Inland Freight Equalization Margin (IFEM) pool requires a comprehensive review.

On the issue of a windfall tax, the committee directed the Finance Division, in consultation with the Federal Board of Revenue and the Petroleum Division, to submit a report at its next meeting.

The committee decided to continue deliberations on the reform proposals before finalizing a comprehensive roadmap aimed at promoting transparency, competition, efficiency and consumer protection in Pakistan's petroleum sector.

The meeting was attended by National Coordinator NCMC Lieutenant General Zafar Iqbal, Minister of State for Finance Bilal Azhar Kayani and other members of the committee.

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