ISLAMABAD: Pakistan has introduced a new daily pricing mechanism for petroleum products, replacing the previous periodic revision system.
Under the new policy, the Oil and Gas Regulatory Authority (OGRA) will determine and publish the ex-depot prices of petrol and diesel every day without requiring government approval.
According to official documents, petrol and diesel prices will now be determined on a daily basis across the country.
OGRA has been directed to immediately implement the new pricing system and will publish the revised ex-depot prices for petroleum products on its official website every day.
The regulator will no longer require prior government approval for the daily determination of fuel prices, making the pricing process more market-driven.
Prices linked to seven-day global average
Under the new mechanism, the prices of petrol and high-speed diesel (HSD) will be linked to the seven-day average of international oil prices.
For petrol, the daily ex-depot price will be calculated based on the import cost and applicable premium. If no imports take place during a particular period, the price will instead be determined using the annual average import premium.
Similarly, the price of high-speed diesel will also be calculated using the import cost and the seven-day average global price.
No price revisions on weekends
The new procedure specifies that petrol and diesel prices will not change on Saturdays and Sundays.
Price revisions will only be issued on working days, while weekend rates will remain unchanged.
The revised pricing mechanism will not apply only to petrol and diesel.
According to the documents, the prices of kerosene oil and light diesel oil (LDO) will also be determined and published on a daily basis under the same framework.
Petroleum levy rules remain unchanged
The documents clarify that the Petroleum Development Levy (PDL) will continue to remain within the maximum limit approved by the federal cabinet.
Any increase or decrease in the petroleum levy will only be possible after receiving approval from the Ministry of Finance.
This means that while OGRA can determine daily fuel prices independently, changes to the levy will remain under the government’s control.
Greater transparency
To improve transparency in fuel pricing, OGRA has also been directed to publish the global reference prices used for calculating petroleum product rates.
The daily publication of international benchmark prices has been made mandatory, allowing consumers and industry stakeholders to compare domestic fuel prices with global market trends.
New import policy for PSO and OMCs
The documents also outline changes to Pakistan’s petroleum import framework. From 2027, Pakistan State Oil (PSO) will become the sole importer of high-speed diesel.
Meanwhile, Oil Marketing Companies (OMCs) will continue to import petrol, but only according to their respective market shares.
The new policy introduces stricter enforcement measures for oil marketing companies.
Any OMC found violating the prescribed import conditions will be disqualified from importing petroleum products for nine months, according to the official documents.
The move aims to ensure compliance with import regulations and maintain a stable petroleum supply across the country.
Immediate implementation ordered
Authorities have directed OGRA to enforce the new daily petroleum pricing mechanism without delay.
The system is expected to make fuel prices more responsive to international market movements while improving transparency through the regular publication of pricing data and global reference rates.
