- Ogra suggests new proposals to change how fuel prices are set in Pakistan.
- The proposals include giving Ogra or the market control over fuel prices.
- Recent fuel price hikes have sparked debate over government control and market dynamics.
The Oil and Gas Regulatory Authority (Ogra) has proposed significant changes to how fuel prices are determined in Pakistan, potentially altering the current system. According to sources, Ogra has put forward two key proposals: one would allow Ogra to set fuel prices directly, while the other would let the market decide prices, with Ogra overseeing the process.
Currently, fuel prices in Pakistan are adjusted every two weeks. Ogra calculates the rates based on various factors and submits its findings to the Finance Division. The Finance Division then consults with the Prime Minister before announcing the official prices. Recent price hikes have seen petrol and diesel increase by Rs9.99 and Rs6.18 per litre, respectively, with current prices at Rs275.60 and Rs283.63 per litre.
One of the new proposals could also empower oil marketing companies (OMCs) to set fuel prices. However, this idea has raised concerns among petroleum dealers, who worry about potential market monopolies if OMCs gain pricing control.
The proposed changes come as Prime Minister Shehbaz Sharif seeks to shift the responsibility for setting fuel prices away from the government, which faces criticism for recent price increases. The government currently only sets fuel prices, not other products.
Ogra’s proposals will be discussed in an upcoming high-level meeting and will be reviewed by the Petroleum Division before the Prime Minister makes a final decision. The Petroleum Division is expected to reach a decision on the matter within the week.