Pakistan reviews petroleum pricing system amid global oil uncertainty

The federal government has begun reviewing Pakistan's petroleum pricing mechanism as renewed uncertainty in global energy markets continues to influence oil prices following the reopening of the Strait of Hormuz.

The federal government has begun reviewing Pakistan’s petroleum pricing mechanism as renewed uncertainty in global energy markets continues to influence oil prices following the reopening of the Strait of Hormuz.

The decision was discussed during a meeting of the Committee on Reforms in the Petroleum Pricing System, chaired by Federal Minister for Petroleum Ali Pervez Malik, where members examined various options for determining domestic petroleum prices in line with changing international market conditions.

According to an official statement issued after the meeting, the committee agreed that the Petroleum Price Stabilization Fund should be operated under a transparent, rules-based framework to help improve predictability in fuel pricing and reduce the impact of global market volatility on consumers.

The committee also recommended that the Oil and Gas Regulatory Authority (OGRA) publish petroleum price data on its official website on a daily basis. The move is aimed at improving public access to pricing information and strengthening transparency in the country’s petroleum sector.

Participants further endorsed the digitalization of Pakistan’s oil supply chain, emphasizing that the use of technology would improve monitoring, enhance efficiency, and reduce irregularities across the fuel distribution network.

Addressing the meeting, Petroleum Minister Ali Pervez Malik said the committee’s role had become even more critical in light of the uncertainty created in international energy markets after the reopening of the Strait of Hormuz. He noted that fluctuations in global oil supply and shipping routes continue to affect petroleum-importing countries, including Pakistan.

The minister also revealed that amendments to the country’s refinery policy have been proposed to reduce reliance on imported diesel. He said increasing domestic diesel production would strengthen Pakistan’s energy security, lower import dependence, and support long-term stability in the fuel sector.

Ali Pervez Malik added that the committee’s recommendations on petroleum pricing reforms and related policy measures would be submitted to Prime Minister Shehbaz Sharif for consideration before implementation.