ISLAMABAD: The Pakistan government has decided to relinquish its responsibility for setting petroleum prices, opting instead to delegate this authority to oil marketing companies.

Prime Minister Shehbaz Sharif on Wednesday instructed the relevant authorities to cease control over price determination, initiating a phased transfer of regulatory power to oil marketing companies.

Following the prime minister’s directive, Petroleum Minister Musadik Malik has called for an important meeting on Thursday (tomorrow) to discuss the details of this plan.

The Chairman of the Oil and Gas Regulatory Authority (OGRA) has been tasked with preparing a report on the effects of deregulating prices and developing a framework for implementation.

The final framework for deregulating petroleum prices will be presented to the Prime Minister for approval.

Previously in April, petroleum dealers in Pakistan warned of shutting down their businesses as the government was reportedly working to deregulate petroleum product prices.

In a statement, Pakistan Petroleum Dealers Association (PPDA) Chairman Abdul Sami Khan opposed the likely move, stating that it would result in increased prices of petroleum products in remote areas.

According to the PPDA chief, deregulating petroleum prices would lead to skyrocketing inflation in the country.

Khan mentioned that petroleum dealers have been urging against this move for years, and the government had previously promised not to take such measures.