Pakistan has set a potential petrol price deregulation target of June 2027 as the government moves to reform the country’s fuel pricing system. The proposed change aims to gradually shift petrol prices toward a competitive, market-based mechanism.
The Petroleum Pricing Committee reviewed recommendations for reforming the existing pricing framework during a meeting chaired by Petroleum Minister Ali Pervaiz Malik. The committee discussed ways to make fuel prices more transparent and predictable while protecting consumers from sudden market shocks.
Under the proposed reforms, petrol prices would gradually move closer to market-based pricing. The committee described June 2027 as a potential target for petrol price deregulation, rather than an immediate change. The recommendations will be submitted to the prime minister for consideration and approval.
The committee also reviewed the existing Inland Freight Equalisation Margin (IFEM) mechanism and approved a revised method for calculating it. Officials said the changes are intended to improve transparency and strengthen competition across the fuel supply chain.
For diesel, the committee approved guiding principles for possible rule-based intervention during emergencies. The framework would include clearly defined price shock triggers and corrective measures to reduce the impact of sudden price increases on consumers.
The committee also considered proposals concerning a price stabilisation fund and fuel reserves. In view of the planned petrol price deregulation, officials said maintaining adequate fuel reserves could be more appropriate than relying on a permanent stabilisation fund. The committee also sought recommendations on the performance of oil marketing companies.
The proposed reforms are aimed at improving market efficiency while limiting the impact of abrupt price movements on consumers. If approved, the petrol price deregulation plan would represent a major shift in Pakistan’s fuel pricing system, with the transition expected to take place gradually through June 2027.
