ISLAMABAD: The federal government has introduced a new daily pricing mechanism for petroleum products and issued detailed implementation guidelines to the Oil and Gas Regulatory Authority (OGRA) to enhance transparency and align domestic fuel prices more closely with international market trends.

According to official documents, OGRA will publish updated prices of petroleum products on its website every working day under the new system.

The prices of petrol and high-speed diesel will be determined using the average international prices of the previous seven working days.

Under the revised mechanism, petrol prices will be calculated based on import costs and applicable premiums. In periods when imports do not take place, prices will be determined using the annual average premium. Diesel prices will also be linked to import costs and the seven-day average of global prices.

The new policy states that petroleum product prices will not be revised on Saturdays and Sundays. OGRA will also be authorized to announce daily prices without requiring prior approval from the federal government.

The guidelines further state that the petroleum levy will remain within the limit approved by the federal cabinet, while any changes to the levy will require the approval of the Ministry of Finance.

To improve transparency, OGRA has been directed to publish international benchmark (Platts) reference prices on its website. The publication of global reference prices has been made mandatory under the new framework.

The policy also outlines import arrangements for the financial year 2026-27, under which Pakistan State Oil (PSO) will remain the sole importer of high-speed diesel, while Oil Marketing Companies (OMCs) will be permitted to import petrol according to their market share. OMCs found violating import conditions may face disqualification from imports for up to nine months.

In addition, the prices of kerosene oil and light diesel oil will also be revised daily under the new pricing mechanism. The government has directed OGRA to implement the system immediately.