ISLAMABAD: Pakistan has introduced a new petroleum pricing mechanism under which the Oil and Gas Regulatory Authority (OGRA) will announce petrol, diesel, kerosene oil, and light diesel oil prices on a daily basis, aiming to enhance transparency and align domestic fuel rates more closely with international market trends.
According to an official document, the revised system authorizes OGRA to publish updated fuel prices every working day on its official website without requiring prior approval from the federal government.
Daily Fuel Prices Based on Global Market Trends
Under the new mechanism, petrol and high-speed diesel (HSD) prices will be calculated using the average international prices of the previous seven working days, along with import costs and applicable premiums.
However, fuel prices will remain unchanged on Saturdays and Sundays, with revised rates becoming effective only on working days.
The document states that if imported fuel is unavailable, prices will instead be determined using the annual average import premium.
Government Approval No Longer Required
The revised policy grants OGRA greater autonomy by allowing it to announce daily petroleum prices independently.
Unlike the previous fortnightly pricing system, the regulator will no longer need approval from the federal government before issuing revised fuel prices.
Officials say the move is intended to make fuel pricing more transparent and responsive to fluctuations in global oil markets.
Petroleum Levy Policy Remains Unchanged
The official document clarifies that the petroleum levy will continue to remain within the limits approved by the federal cabinet.
Any increase or decrease in the levy will still require formal approval from the Ministry of Finance, ensuring government oversight over taxation despite the daily pricing mechanism.
International Reference Prices to Be Published
To improve transparency, OGRA will also begin publishing daily international reference prices on its website.
The initiative, effective from July 1, 2026, is expected to help consumers and industry stakeholders better understand how domestic fuel prices are linked to global oil markets.
New Import Rules for Oil Companies
The policy also introduces significant changes to fuel imports.
Beginning in the 2027 financial year, Pakistan State Oil (PSO) will become the only company authorized to import high-speed diesel (HSD).
Meanwhile, private Oil Marketing Companies (OMCs) will be allowed to import petrol according to their respective market shares.
The government has also warned that OMCs violating import regulations could face suspension of import permissions for up to nine months.
Kerosene and Light Diesel Prices Also to Change Daily
In addition to petrol and diesel, prices of kerosene oil and light diesel oil (LDO) will also be updated daily under the new pricing formula.
Immediate Implementation Ordered
The government has directed OGRA to implement the revised pricing mechanism immediately, marking one of Pakistan’s most significant reforms in petroleum price regulation.
Officials believe the new system will improve transparency, reduce administrative delays, and ensure that domestic fuel prices reflect international market movements more quickly while maintaining oversight of petroleum taxation.
