Petrol prices may be deregulated by June 2027

The government has moved closer to deregulating petrol prices, with a Petroleum Pricing Committee proposing June 2027 as a

ISLAMABAD: The government has moved closer to deregulating petrol prices, with a Petroleum Pricing Committee proposing June 2027 as a possible target for shifting fuel prices to a competitive, market-driven system.

A meeting of the committee was held in Islamabad under the chairmanship of Petroleum Minister Ali Pervaiz Malik. The meeting focused on ways to make petroleum pricing more transparent, predictable and efficient.

The committee agreed on a set of recommendations aimed at improving the existing mechanism for determining prices of petroleum products. The proposed measures are also intended to reduce uncertainty for consumers and limit the impact of sudden price fluctuations.

Under the proposed framework, petrol prices would gradually move towards a competitive pricing model. This would reduce reliance on a fully administered pricing mechanism and allow market conditions to play a greater role in determining retail prices.

The committee identified June 2027 as a potential timeline for completing the deregulation process. However, the proposed date remains subject to the government’s final decision and implementation of the recommended measures.

Officials are expected to present the committee’s final report to Prime Minister Shehbaz Sharif shortly. The report will outline the recommendations and the proposed roadmap for transitioning towards market-based petrol pricing.

The committee’s work is part of broader efforts to improve transparency in the petroleum sector and create a more predictable pricing mechanism.

A gradual transition is being considered to minimise disruption for consumers and market participants. Authorities also aim to ensure that greater market competition does not compromise consumer protection.