The federal government has decided to transfer the power to set oil prices from the state to oil trading companies, sources revealed on Wednesday.
Laborers said Prime Minister Shehbaz Sharif had ordered an end to the government’s role in setting oil prices, prompting Oil Minister Musadik Malik to convene a crucial meeting scheduled for tomorrow.
The government is preparing to gradually hand over pricing power to oil trading companies.
The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been tasked with assessing the impact of oil price deregulation and developing a strategic framework.
The final deregulation framework will be presented to the prime minister for approval.
Sources say oil marketers have opposed giving pricing authority to oil trading companies, arguing it could lead to speculation.
Earlier, the Petroleum Marketing Association of Pakistan (OMAP) had appealed to Chief Minister Shehbaz to immediately intervene and facilitate recovery of foreign exchange losses of the oil industry.
In this regard, OMAP President Tariq Wazir Ali wrote a letter to the Prime Minister to draw his attention to the unrecoverable foreign exchange losses of the oil industry, which were pending for a long time.
He stressed that immediate action will help safeguard the oil industry from further crisis and ensure its continued contribution to the national economy.
He praised the government’s policies for getting the country back on track, adding that “commitment to economic stability and growth is a beacon of hope for many industries, including the oil industry.”
Earlier, the oil refiners also called on the government to make full recovery of the real exchange losses.
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