Pakistan Approves Daily Fuel Pricing System as OGRA Takes Full Control
ISLAMABAD: Pakistan is set to overhaul the way petroleum prices are determined after the federal cabinet approved a new framework that introduces daily adjustments for petrol and high-speed diesel.
The revised policy authorizes the Oil and Gas Regulatory Authority (OGRA) to issue daily ex-depot fuel prices without seeking prior approval from the prime minister or the federal government. The move marks a significant shift from the previous system, under which fuel prices were revised at fixed intervals following government approval.
Under the new mechanism, OGRA will calculate prices using the average international market rates recorded over the previous seven business days. Officials say the formula is intended to align domestic fuel prices more closely with fluctuations in the global oil market while improving the transparency and efficiency of the pricing process.
As part of the implementation plan, the prices announced on the last working day of the week will remain in force throughout Saturday and Sunday, meaning no fresh notifications will be issued over the weekend.
The regulator will also publish daily Platts reference prices on its official website, allowing consumers and industry stakeholders to monitor the international benchmark used in determining local fuel prices.
The new system is expected to make fuel pricing more market-driven and reduce delays in passing on changes in global crude oil prices to consumers. While motorists could see more frequent adjustments, analysts believe the mechanism may also help ensure that domestic prices better reflect international market conditions.
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