Due to a significant decline in global crude oil prices, there is speculation that petroleum product prices in Pakistan may also see a reduction this month.

Recently, crude oil prices dropped nearly 2 percent to a six-week low, driven by growing hopes of a cease-fire in Gaza and concerns over China’s rising demand.

In response to these global trends, the Pakistani government is expected to announce a decrease in domestic petroleum prices next week. The anticipation follows the ongoing fall in crude oil costs, which has set the stage for adjustments in local fuel prices.

Simultaneously, the government is moving towards deregulating the petroleum pricing mechanism.

Prime Minister Shahbaz Sharif has initiated steps to transfer the authority to set petroleum prices from the government to oil marketing companies. This shift aims to introduce a more market-driven approach to pricing.

Minister of Petroleum has called a crucial meeting on Thursday to discuss this transition. The plan involves granting oil marketing companies the power to determine prices gradually.

Chairman Ogra has been tasked with drafting an action plan to assess the impact of this deregulation. The comprehensive framework for deregulating petroleum prices will soon be presented to the Prime Minister.

However, this move has met with resistance from petroleum dealers, who fear that giving oil marketing companies unchecked pricing power could lead to unfair profiteering.

They argue that without proper safeguards, there is a risk of exploitation, potentially burdening consumers with unjustified price hikes.

As the government progresses with its deregulation plan, stakeholders are closely watching to ensure that the transition does not compromise consumer interests while fostering a competitive and fair market for petroleum products.

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