Due to a significant drop in global crude oil prices, petrol prices in Pakistan are expected to decrease by up to Rs. 8 per litre starting August 1, 2024.
According to international media reports, crude oil prices have fallen nearly two percent to a six-week low, driven by rising expectations of a cease-fire in Gaza and concerns about decreasing demand in China. If the government passes this reduction on to consumers, prices in Pakistan will also drop. However, the final decision will be made by the Oil and Gas Regulatory Authority (OGRA) on July 31.
Meanwhile, the federal government is preparing to transfer the authority to set petroleum prices from the state to oil marketing companies. Insiders revealed that Prime Minister Shehbaz Sharif has directed the government to relinquish its role in determining petroleum prices. Consequently, Petroleum Minister Musadik Malik has scheduled a crucial meeting for tomorrow to discuss this transition.
The government plans to phase in the delegation of pricing authority to oil marketing companies. The Chairman of OGRA has been tasked with evaluating the impacts of deregulating petroleum prices and developing a strategic framework. The final deregulation framework will be submitted to the prime minister for approval.
Sources indicate that petroleum dealers have expressed opposition to granting pricing authority to oil marketing companies, citing concerns about potential profiteering.
