CPP directs OGRA to submit report on OMCs

ISLAMABAD: The Committee on Petroleum Pricing(CPPy) chaired by Federal Minister for Petroleum Ali Pervaiz Malik, met to review the petroleum pricing framework and deliberate on measures to make fuel pricing more transparent, predictable while protecting consumers from undue price volatility.
The Committee agreed on a set of recommendations for strengthening the existing pricing mechanism and decided that its final report would be submitted to the Prime Minister for consideration and approval soon.
For diesel pricing, the Committee approved the guiding principles for possible rules based intervention in case of emergency situation with clearly defined price shock triggers and possible corrective measures.
The Committee also reviewed the recommendations for petrol pricing formula while setting a likely target of June 2027 for deregulation of petrol, ensuring a gradual transition towards competitive market-based pricing while protecting consumers from undue price volatility.
The Committee also reviewed the current IFEM mechanism and agreed to a revised methodology of IFEM calculation. OGRA assured IFEM audit for FY26 would be completed by end of CY26.
The Committee further directed OGRA to submit written recommendations on consolidation and performance of existing OMCs especially in terms of adoption of best practices & latest technologies.
The Committee reviewed the report of sub committees on price stabilization fund benched marked against various successful and failed global models and directed the subgroup to further refine its proposals. The committee however observed that in view of ultimate deregulation of market, maintaining adequate fuel reserves would be more appropriate than establishing a stabilization fund.
The recommendations agreed by the Committee are aimed at bringing greater predictability and transparency in petroleum pricing, ensuring market efficiency and safeguarding consumers against abrupt price movements, while facilitating Pakistan’s gradual transition towards deregulation.
Subcommittee headed by Mr Naeem Ghauri would meet with Chairman FBR to assess whether taxation regime needs to be reviewed in light of changing market conditions.
The meeting was attended by other members of the committee including National Coordinator NCMC, Mr Zahid Mir and Mir Naeem Ghauri along with Representatives of OGRA, FBR, Finance Division, KPMG and officials of Petroleum Division.