Due to the constant scarcity of petrol across the country the government of Pakistan has decided to completely deregulate the price and marketing of petrol and eliminate the mechanism of uniform pricing. According to the report this decision has been made at that time when oil marketing companies are being criticized for their cartilage behavior in the case of high octane blending component. Keep in mind that high octane blending component (HOBC) is another deregulated product and despite a sharp drop in worldwide oil prices it has not slowed down. The Oil and Gas Regulatory Authority on June 5 warned some oil marketing companies (OMCs) of high octane blending component unnecessarily high prices due to the media criticism.
After talking with OMCs petroleum division has decided to link the price of petrol commonly known as Mogas 92 to the oil industry so that prices should be fixed on the basis of the actual import price of Pakistan State Oil instead of existing pricing mechanism. According to the official records the authorities have made it clear to the industry that the frequency of petroleum products will remain monthly because the Economic Coordination Committee of Cabinet had denied to transfer it on a 15 day basis. However, pricing formula will be converted into Plates Oil Gram Previs Month Average. Similarly the price of petrol will be deregulated in the style of high octane blending component in which the commissions of Oil Marketing companies and dealers will also be included.
Government has also agreed that the mechanism of Inland Freight Equalization Margin will also be deregulated which is currently being used to keep the prices same across the country. It means that the prices will vary from one city to another and from one oil company to another. In addition, the people existing near the refineries and ports will beneficial because they will be able to get petrol at lower price while the people living away from the ports and oil Refineries will have to pay a higher price. Prices can vary from one to five rupees per liter depending on the cost of transportation. The government blamed oil marketing companies and retailers for creating artificial scarcity of petrol to maximize profits.
Minister of Energy and Petroleum Omar Ayub Khan said in a tweet that few oil marketing companies and retailers are creating artificial shortage of petrol and diesel for illegal profits. He said that government has decided to take action against these companies and dealers to expose them with the help of regulators and provincial government. Federal Minister announced that their license will be canceled and also claimed that there is no shortage of petroleum products in the country. While on the other hand Oil and Gas Regulatory Authority has warned oil companies that despite the lack in product prices, the price has been set in apparently together and uncompetitive manner for artificial growth. A statement from petroleum division claimed that a suitable stock of petroleum and diesel is available in the country and the citizens have to avoid the purchasing in chaos.