Petrol Prices may be revised daily in Pakistan

LAHORE: The federal government is considering a major overhaul of Pakistan’s petroleum pricing system under which the prices of petrol, high-speed diesel, kerosene oil and light diesel oil could be revised daily instead of the current fortnightly mechanism.

According to sources, the Petroleum Division is reviewing a proposal that would significantly reduce the government’s direct role in fixing fuel prices. Under the proposed system, the responsibility for determining petroleum prices would be handed over entirely to the Oil and Gas Regulatory Authority (OGRA).

A senior Petroleum Division official said that OGRA would calculate new prices every night after assessing international crude oil prices, import costs, exchange rate fluctuations and other relevant market factors. The revised prices would come into effect from 12:00 am each day, with petrol pumps nationwide required to sell fuel at the updated rates.

The proposed mechanism aims to ensure that changes in global crude oil prices are passed on to consumers without delay, making Pakistan’s fuel pricing system more transparent, market-driven and efficient.

At present, petroleum prices in Pakistan are revised every 15 days following government approval based on OGRA’s recommendations.

However, officials clarified that no final decision has been taken on the proposal. The government has neither approved the plan nor issued any official notification. If implemented, the move would mark one of the biggest reforms to Pakistan’s petroleum pricing mechanism in recent years.