Pakistan sets June 2027 target to deregulate petrol prices

ISLAMABAD: The government has set June 2027 as the target for deregulating petrol prices as part of a broader plan to reform the country’s petroleum pricing mechanism.

A meeting of the Petroleum Pricing Committee discussed major reforms to the pricing system for petroleum products, including a proposal to link the pricing formula more closely with market conditions.

The committee also decided to develop a mechanism to manage sharp fluctuations in diesel prices, with emphasis on protecting consumers from sudden increases in petroleum prices.

During the meeting, the committee approved a new methodology for the Inland Freight Equalization Margin (IFEM).

Under the revised approach, the government has set June 2027 as an interim target for moving towards deregulation of petrol prices.

The proposed reforms are aimed at making the petroleum pricing system more market-oriented while ensuring greater protection for consumers against significant price volatility.