Pakistan deregulates oil product prices

Pakistan has decided to deregulate oil product prices effective June 1. However, the Oil and Gas Regulatory Authority (OGRA) would continue to issue an indicative price, which will be linked to the cost of supply of state-owned Pakistan State Oil (PSO). PSO has more than 70% share of the domestic petroleum market. OGRA Finance Executive Director Syed Jawad Naseem said the decision to deregulate was made by the Economic Coordination Committee (ECC) of the cabinet last October. Deregulation would reduce the gap between local and imported products, as the Finance Ministry had to pay the differential or so called “inland freight equalization margins” to oil refineries in the past. (June 1,2011)