Petrol prices likely to be deregulated
ISLAMABAD: With Punjab and remote areas in other provinces facing a severe shortage of petrol, mainly because of transportation problems and lack of storage, the government is expected to deregulate oil pricing on Tuesday and allow refineries to fix prices of petroleum products, except diesel, to improve their financial position.
The government is also considering to cancel marketing licences of oil companies which have failed to set up storage facilities in accordance with the law, leading to the drying up of their retail outlets and creating difficulties for commuters.
Petroleum Minister Syed Naveed Qamar told Dawn that the deregulation would result in an average increase of about Re1 per litre in petrol prices, although removal of the inland freight equalisation margin (IFEM) would reduce the prices of all products in major cities. “The impact of IFEM’s removal will be positive on all products.”