Pakistan Plans to Deregulate Fuel Prices, Says Petroleum Minister
ISLAMABAD:Federal Minister for Petroleum Ali Pervaiz Malik has announced that the government is preparing to **deregulate petroleum prices**, signaling a shift toward a market-based pricing system for fuel.
Speaking at a meeting of the National Assembly’s Standing Committee on Petroleum, the minister said Pakistan has been announcing petroleum prices through a transparent mechanism for the past two decades. However, the government is now working to gradually transition to a system where fuel prices are determined by market forces.
He said a committee established by Prime Minister Shehbaz Sharif has already held three meetings to review reforms to the petroleum pricing mechanism. Among the proposals under consideration is the introduction of **daily fuel price updates** instead of the current periodic revisions.
### What Does Deregulation Mean?
Deregulation of petroleum products means the government would no longer directly notify the prices of petrol, diesel, or light diesel oil. Instead, fuel prices would be determined by oil marketing companies based on market conditions.
Under the proposed system, the government’s direct role in setting prices would be reduced, allowing companies to adjust prices according to factors such as international oil prices, supply and demand, operating costs, and applicable taxes.
As a result, **petrol and diesel prices could vary between companies**, with different retailers setting their own prices based on their individual cost structures and market strategies, creating greater competition in the fuel market.
