ISLAMABAD: The federal government has decided to introduce a more transparent petroleum pricing system by authorizing the Oil and Gas Regulatory Authority (OGRA) to determine petroleum product prices on a daily basis in line with international market trends.
Addressing a joint news conference, Petroleum Minister Ali Pervaiz Malik said the decision, approved by Prime Minister Shehbaz Sharif and the federal cabinet, is aimed at ensuring transparency while reducing the government’s direct role in fuel price-setting.
Under the new mechanism, OGRA will publish daily petroleum prices on its website along with the international Platts benchmark and a detailed breakdown of all components that make up the retail price. Domestic fuel prices will be calculated using the average Platts price over the previous seven working days, allowing changes in global markets to be reflected automatically without government intervention.
The minister said recent increases in international oil prices have pushed diesel prices from around $110 to $140 and petrol from about $89 to nearly $100 under the Platts benchmark, putting pressure on domestic pricing.
Ali Pervaiz Malik said the government has spent Rs130 billion on petroleum subsidies to cushion consumers from the impact of rising global prices, adding that the subsidy programme remains in place. He rejected claims that the government has imposed additional burdens through petroleum levies, saying current levy levels remain below those applicable before the recent regional conflict.
The minister described the new pricing framework as another step toward deregulating Pakistan’s petroleum sector. He said a high-level committee is preparing recommendations on long-term energy pricing reforms and energy security, while work is also underway on establishing a strategic petroleum reserve, expanding domestic oil and gas exploration, upgrading refineries, addressing circular debt and improving energy governance.
He also warned that strict action would be taken against profiteering in the petroleum sector to protect consumers’ interests.
