ISLAMABAD: The government has planned to fully deregulate its petroleum products market by 2027 after the country’s oil refineries make necessary technical upgradation in 2026, according to the draft of the upcoming Pakistan Oil Refining Policy.
Oil marketing firms and oil refineries are currently being consulted by the Oil and Gas Regulatory Authority (Ogra).
Currently, the government sets the prices for petroleum products, reviewing them every two weeks to keep them in line with changes in the price of these products on the global market.
The decision to completely deregulate until 2027 will be made after consulting with all the stakeholders.
Incentives will be provided by the government, including a 10-year income tax vacation, to oil refineries in the nation that agree to modernize their equipment in order to produce fuel compliant with Euro-V standards.
The sulphur content must be reduced in accordance with the Euro-V criteria in order to prevent air pollution and increase vehicle efficiency, which is primarily impacted by poor gasoline quality.
The government would declare tariff protection for six years for refineries that decide to upgrade under the new scheme. A minimum of $4–5 billion would be required to finance hardware upgrades.
Pakistani oil refineries must finish the upgrade process by December 31, 2026, according to the draught policy.
