The Special Investment Facilitation Council (SIFC) Executive Committee on Inland Freight Equalization Margin (IFEM) has decided to increase fuel prices, including petrol, diesel, kerosene oil, and light diesel oil, by Rs. 2.50 per liter.
The additional revenue generated from this price hike will be transferred to escrow accounts, specifically allocated for financing refinery upgrade projects. This temporary measure will remain in effect until the next federal budget.
During the meeting, the Oil and Gas Regulatory Authority (OGRA) was tasked with assessing the impact of the IFEM adjustment. The Petroleum Division was directed to prepare a summary for submission to the Economic Coordination Committee (ECC) for approval.
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Despite the move, Pak-Arab Refinery Limited (PARCO), which holds a 48% market share, expressed its opposition, labeling the IFEM as a temporary arrangement.
Furthermore, the Petroleum Division was instructed to present a feasible plan within a week to kickstart local refineries' upgrade projects, estimated to cost $5–6 billion.
The decision marks a critical step in ensuring the sustainability and modernization of the country's petroleum sector.
