OCAC Urges Govt to Discuss With Private Refineries on How to Deregulate Petrol, Diesel Prices

The oil sector in Pakistan has urged the government to include private refineries and oil marketing companies (OMCs) in deregulating petroleum product prices. The Oil Companies Advisory Council (OCAC) said in a letter that major private stakeholders must be part of the working group tasked with deregulating the oil sector. The government is advancing plans to deregulate petroleum prices, but the OCAC has raised concerns about the exclusion of private refineries and OMCs from consultations. Chairperson of the council warned that private stakeholders’ exclusion could result in poorly designed policies. He emphasized that the exemption of petroleum products from sales tax under the Finance Act 2024-25 has already strained the sector. He criticized the Petroleum Division for prioritizing consultations with public sector companies despite directives from the Prime Minister to include the private sector. He cautioned that a unilateral approach would risk repeating the missteps seen in past policy implementations. OCAC has called for a balanced and inclusive policy framework to address the industry’s existential challenges and avoid further complications.