By Javed MirzaDecember 02, 2016Print : Business
KARACHI: Government has deregulated the prices of higher grade 95 RON (Research Octane Number) fuel -- a step which marks the liberalisation of fuel market in the country, a minister said on Thursday.
“This is the first step. The parliament and other forums are currently debating to free up downstream sector and the entire fuel market would be deregulated shortly,” said Shahid Khaqan Abbasi, Minister for Petroleum and Natural Resources told the participants of an event organised by Shell Pakistan. “I believe this milestone would be achieved in the current tenure of Pakistan Muslim League-Nawaz (PML-N) government.”
Abbasi said now consumers have an option to choose from regulated and deregulated fuels. “The base grade has been upgraded from 87 RON to 92 RON, which is a regulated product while 95 RON and 97 RON are unregulated products, which are being sold at market-based rates,” he added.
He was addressing the ceremony wherein Shell unveiled its new product Shell V-Power in Pakistan. The minister lauded the initiative by the petroleum giant and hoped other oil marketing companies (OMCs) would follow suit. To a question, Abbasi said fuel prices in Pakistan are the cheapest in the entire world as the government is committed to provide relief to the masses.
Minister of State for Petroleum and Natural Resources Jam Kamal Khan said as the vehicles are becoming more and more sophisticated the fuels need to be improved as well. “A better and more environmentally-friendly fuel is needed in the country,” Jam said. "Euro-II diesel would also be launched very soon."
Moreover, appreciating the petroleum ministry move, Jawwad Cheema, managing director at Shell said the government has given his company an opportunity to serve the local consumers with world class offering like Shell V-Power by deregulating the fuel prices.