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🇵🇰 Pakistan /Economy & Trade

Pakistan government eyes petrol deregulation by June 2027

From Dawn · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • Pakistan’s government plans to fully deregulate petrol prices by June 2027, with high-speed diesel to follow later.
  • Officials agreed in principle to let the Oil and Gas Regulatory Authority adjust diesel pricing using crude-linked calculations during unusual increases in the diesel crack spread.
  • The recently created Petroleum Prices Stabilisation Fund is unlikely to be put into operation.

Pakistan is preparing to dismantle the current controls on petrol prices by June 2027, while high-speed diesel would be deregulated at a later stage. The plan forms part of a broader attempt to change how fuel prices are set.

A committee on petroleum pricing, led by Petroleum Minister Ali Pervaiz Malik, agreed in principle to give the Oil and Gas Regulatory Authority, or Ogra, more room to act on diesel prices. Ogra could switch to crude-based calculations when the diesel crack spread rises unusually, without seeking repeated approval from the federal cabinet.

The diesel crack spread measures the gap between international diesel and crude oil prices. The cabinet last month temporarily capped the high-speed diesel crack spread at $41.89 per barrel after its average reached that level.

The government is also unlikely to operationalise the recently created Petroleum Prices Stabilisation Fund. Instead, officials are pursuing further changes to the pricing mechanism, with diesel deregulation to come after petrol.

About this summary

Originally published by Dawn in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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