OGRA to determine fuel prices daily using international market trends as government pushes for greater transparency and deregulation.
The federal government has decided to review petroleum prices on a daily basis in response to sharp fluctuations in international oil markets, Petroleum Minister Ali Pervaiz Malik announced on Friday.
Speaking at a press conference alongside Information Minister Attaullah Tarar, Malik said rising geopolitical tensions in the Middle East have intensified concerns over global energy supplies, leading to significant increases in international oil prices, particularly diesel.
As part of a broader reform agenda, the government has assigned the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining petroleum product prices every day based on prevailing international market conditions.
The move is aimed at improving transparency and further deregulating the fuel pricing mechanism in Pakistan.
The minister said that under the new framework, OGRA will not only notify daily fuel prices but will also publicly share the calculations and market indicators used to determine the rates charged at fuel stations across the country.
“Consumers will be able to see the factors behind petroleum price adjustments, helping them better understand how fuel prices are calculated,” Malik stated.
He acknowledged that daily price revisions could occasionally result in higher costs for consumers. However, he emphasized that increased transparency would provide clarity on the reasons behind such adjustments and strengthen public confidence in the pricing system.
Malik reiterated the government’s commitment to Prime Minister Shehbaz Sharif’s policy of transferring the benefits of lower international oil prices directly to consumers whenever global markets ease.
Highlighting past trends, he noted that Pakistan had previously experienced substantial reductions in fuel prices when international crude oil prices declined. According to the minister, diesel prices had fallen from around Rs520 per litre to nearly Rs300 per litre, while petrol prices had dropped by Rs70 to Rs80 per litre during periods of lower global oil rates.
Addressing concerns regarding fuel taxation, Malik said petroleum levy and carbon support levy rates on petrol and diesel remain comparatively modest. He added that the government is working to improve fiscal transparency while gradually reducing reliance on indirect taxation.
Under the proposed mechanism, petroleum prices will be calculated using a rolling seven-day average of international fuel prices. This system is intended to automatically reflect global market movements without requiring approval from ministers or other government officials.
“This reform is another step toward deregulation, ensuring that fuel prices are adjusted according to international market realities without political intervention,” the minister said.
Malik revealed that a committee established by the prime minister and headed by him has already held four meetings to evaluate and reform the country’s petroleum pricing structure.
He further disclosed that the government plans to finalize a comprehensive post-conflict energy pricing and energy security framework within the next 15 to 20 days. The proposed architecture is expected to serve as a long-term roadmap for Pakistan’s energy sector reforms.
The minister also stressed the importance of reducing Pakistan’s dependence on imported energy sources and called for stronger measures to enhance domestic energy security and long-term sustainability.