ISLAMABAD: The federal cabinet has approved a major change to the country’s fuel pricing mechanism, authorising the Oil and Gas Regulatory Authority (OGRA) to determine petroleum product prices on a daily basis.
The decision comes as renewed regional tensions continue to push global energy prices higher. The new system is intended to align domestic fuel prices more closely with fluctuations in the international market.
Speaking at a press conference alongside Federal Minister for Information Atta Tarar, Federal Minister for Petroleum Ali Pervaiz Malik said Prime Minister Shehbaz Sharif and the federal cabinet had approved the new pricing framework.
According to Malik, OGRA will now calculate petroleum product prices every day and publish the revised rates on its official website.
The petroleum minister said the government had deliberately reduced its role in fuel price setting, allowing the regulator to determine prices based on prevailing international market conditions.
He noted that energy prices have once again begun rising globally due to increasing tensions in the region. As an example, he said the international price of diesel had climbed sharply from $110 per barrel to $140 per barrel, reflecting the renewed pressure on global energy markets.
Malik also acknowledged the public’s patience during recent periods of economic difficulty, saying citizens had shown resilience despite challenging conditions.
Under the revised mechanism, OGRA will be responsible for monitoring international price movements, calculating daily petroleum prices and making the updated rates publicly available through its website. The government says the change is aimed at ensuring domestic fuel prices respond more quickly to developments in global energy markets while limiting direct government intervention in the pricing process.
