New fuel pricing system to end unfair profits, ensure fair rates

Petroleum Minister Ali Pervaiz Malik said on Saturday that fuel prices will now be adjusted every day instead of every week. He said this change will help stop unfair practices in the market. It will also stop companies from making sudden extra profits. He said the new system will bring more transparency and fair prices for consumers.

The minister shared these views during a meeting with important people from the petroleum sector. He said the reform will also increase competition in the market and keep prices linked to real market conditions.

A day earlier, Malik had announced that fuel prices would now change daily. He said this decision was made because international oil prices are changing quickly due to fresh tension between Iran and the US.

Under the new system, petrol and diesel prices will be set using a clear formula. This formula will be based on actual market conditions. Officials say this will reduce the role of politics in setting prices. It will also protect consumers from sudden and unexpected price jumps.

The meeting included officials from the Oil and Gas Regulatory Authority, the Oil Companies Advisory Council, the Oil Marketing Association of Pakistan, oil refineries, and other oil marketing companies. They discussed how the new pricing system will work in practice.

They also shared their concerns about possible problems during the shift.

Industry representatives welcomed the move. They said it is a positive step towards giving the petroleum sector more freedom from government control.
Malik told the meeting that this reform came on the instructions of Prime Minister Shehbaz Sharif. It was also approved by the federal cabinet. He said the goal is to create a pricing system based on clear rules rather than manual decisions.

He explained that daily pricing marks a major shift towards a market driven economy. It will end the old system of weekly announcements that needed government approval every time.

Officials said this daily pricing plan is part of a bigger strategy. The government wants to slowly reduce its own role in deciding fuel prices. Instead, it wants market forces to decide prices, similar to how currency exchange rates change daily.

Malik said his ministry is working closely with Ogra and other stakeholders. Together, they are preparing detailed procedures to make sure the transition goes smoothly. He added that technical issues, such as freight charges and refinery adjustments, are also being resolved through consultation.

Ogra told the meeting that its internal systems are now ready for the new pricing model. It is also improving how it shares daily price information with the public.

The meeting also discussed supply chain issues, fuel storage, and the need for real time data. The government promised full support to solve any operational problems. A special committee has been formed to manage the transition smoothly.

Malik asked the Petroleum Division and Ogra to hold more meetings with industry representatives. These meetings will help fine tune the pricing formula and fix any remaining issues.

A day earlier, the government raised petrol prices by Rs5.44 per litre and diesel prices by Rs31.05 per litre. These new prices will remain in effect until July 20. Petrol now costs Rs316.15 per litre, while diesel costs Rs354.35 per litre.