Govt introduces daily petroleum pricing mechanism

The federal government has announced that petroleum prices in Pakistan will now be reviewed and notified on a daily basis to improve transparency and

The federal government has announced that petroleum prices in Pakistan will now be reviewed and notified on a daily basis to improve transparency and ensure that local fuel prices reflect changes in international oil markets more quickly.

The decision was approved during a meeting of the federal cabinet chaired by Prime Minister Shehbaz Sharif. Petroleum Minister Ali Pervaiz Malik announced the new policy while addressing a joint press conference with Information Minister Ataullah Tarar.

Malik said the Oil and Gas Regulatory Authority (OGRA) has been given the responsibility of determining daily petroleum prices. He said the regulator will calculate prices according to international market trends while ensuring that the government is not exposed to unnecessary financial risks.

The minister said OGRA will also publish the internationally recognised Platts benchmark rates on its official website. In addition, it will provide a complete breakdown of the components that make up the final retail price of petrol and diesel. These details will include taxes, duties, margins and other pricing elements so that consumers can clearly understand how fuel prices are determined.

He said the government wants to make the entire pricing process more open and transparent. According to Malik, the new system will help the public understand why changes in global oil prices directly affect domestic fuel prices.

The announcement comes as international energy markets continue to witness volatility following renewed tensions in the Middle East after the recent exchange of strikes between the United States and Iran. The minister said the latest developments have pushed crude oil and refined petroleum prices higher across global markets.

Malik said international diesel prices have increased sharply in recent days. He noted that the Platts benchmark for diesel has risen from around $110 per barrel to nearly $140 per barrel. Petrol prices have also moved upward, with benchmark rates climbing from approximately $89 per barrel to close to $100 per barrel.

He said these increases have created additional pressure on countries that rely on imported petroleum products, including Pakistan. As a result, the government has found it difficult to avoid adjustments in local fuel prices.

The petroleum minister thanked the public for showing patience despite the rising cost of fuel and other economic challenges. He said the government has attempted to reduce the burden on consumers through financial support measures, including a subsidy package worth Rs130 billion and targeted relief programmes implemented with the cooperation of provincial governments.

Malik also referred to Pakistan’s diplomatic efforts to promote regional peace. He said the country’s leadership, including Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, had worked to encourage reconciliation and support a lasting ceasefire in the region. However, he said fresh tensions have once again increased uncertainty in international energy markets.