Pakistan Moves to Deregulate Oil Prices as Cabinet Approval Expected Soon
ISLAMABAD: The government is considering a proposal to deregulate oil prices, with Federal Minister for Economic Affairs Ahsan Cheema saying that the policy is expected to receive cabinet approval soon.
According to the Ministry of Economic Affairs, a delegation from PARCO Gunvor Limited and Gunvor Group met with Federal Minister Ahsan Cheema to discuss cooperation in the energy and petroleum sectors, sectoral reforms and the upgradation of refineries.
The delegation included Gunvor Group Head of Portfolio Shahab Rachial, Director Corporate Affairs Thomas Petras and Kashif Mayo.
During the meeting, Ahsan Cheema said the proposed deregulation of oil prices was under consideration and that the cabinet was expected to approve the policy shortly.
Gunvor Group welcomed the proposed move, describing it as an important development for Pakistan’s petroleum market. The group said deregulation would promote healthy competition among oil marketing companies.
The federal minister said refineries were being upgraded to improve the performance and competitiveness of the petroleum sector. Gunvor Group also expressed its willingness to support efforts to modernize Pakistan’s refineries and said PARCO Gunvor Limited was expanding its business network in the country.
Ahsan Cheema assured the delegation that the government was working to create a conducive environment for business activities and investment. He said institutional and administrative reforms were being undertaken to further strengthen Pakistan State Oil (PSO), while reforms in OGRA and the petroleum sector would continue to promote transparency, competition and investment.
The Gunvor delegation also appreciated the measures taken to ensure uninterrupted fuel supplies in Pakistan during the Gulf crisis.
Ahsan Cheema said that despite the global crisis, the government, with the cooperation of OGRA and other relevant institutions, had ensured fuel availability and price stability.
Both sides reaffirmed their commitment to continued coordination and cooperation on reforms, market development and investment in Pakistan’s petroleum sector.
