Petroleum prices may decrease this month
The government will likely approve a new pricing mechanism and a reduction in current rates on August 15th, since it has decided to hold further consultations on weekly variations in the prices of oil products.
PM Shehbaz Sharif sought a report from the Ministry of Petroleum as well as the Ministry of Finance on this matter. However, it has currently decided to continue consultations on the matter.
Discussions will take place with all stakeholders, including oil companies, and a decision is expected to be rendered by August 15.
The aim of setting prices on a weekly basis is to limit the loss or profit of oil-importing and selling companies because of price fluctuations. In addition, the government believes that the public could also benefit from price movements on the international market.
In addition, the government is serious about deregulating all oil products. This means that its intervention in the determination of prices will cease and that the oil companies will set the prices at the market rate.
It considers that the PSO, which belongs to the State, will prevent the establishment of mafias or cartels in the oil industry and will intervene if such a decision is taken. According to the Center, this will bring the actual price of oil products to the public.
The authorities will continue to deliberate on the proposal during the Ashura holidays, following which a final decision will be made.
The government has already deregulated the high octane, which led to an initial increase, but eventually, prices dropped.