According to the sources, the regulatory body has come up with two suggestions. The first proposes that Ogra itself, as the regulator, should have the authority to set fuel prices. The second proposal suggests that the market should determine the prices, with oversight from the regulatory body.
Currently, petroleum product prices in the country are revised every two weeks. Ogra calculates the rates by evaluating various factors and submits a summary to the Finance Division, which then consults with the prime minister before announcing the official fuel prices.
Changes in petroleum product prices are crucial because they significantly impact the inflation-weary public.
Earlier this month, the government raised petrol and high-speed diesel prices by Rs9.99 and Rs6.18 per litre, respectively.
According to a statement from the Finance Division, these price adjustments were based on Ogra’s assessment of international market price variations.
Following the hike, petrol is now priced at Rs275.60 per litre, and diesel at Rs283.63 per litre.
Sources also mentioned that there is a possibility of granting oil marketing companies (OMCs) the authority to set fuel prices, a proposal that has raised concerns among petroleum dealers.
However, sources cautioned that allowing OMCs to fix prices could lead to market monopolies.
This potential policy shift follows Prime Minister Shehbaz Sharif’s directive to relieve the government of the responsibility for deciding fuel prices.
Sources indicated that the government faces criticism primarily for the increase in petroleum product prices, as it does not set the price of any other commodities.
Ogra’s proposals will be presented in a high-level meeting, discussed with the Petroleum Division, and subsequently approved by the prime minister.
The Petroleum Division is expected to make a final decision on this matter within a week.
