ISLAMABAD – Amid fresh global oil market turmoil and uncertainty over tensions in Hormuz, Ministry of Energy launched a high-level review of Pakistan’s petroleum pricing system, with sweeping reforms under consideration to shield consumers and strengthen the country’s energy security.
The federal government is considering activation of a permanent, rules-based Petroleum Price Stabilization Fund that would help cushion the impact of sudden spikes or sharp declines in international oil prices, allowing consumers to receive more predictable relief during periods of market volatility.
Officials are considering proposal for Oil and Gas Regulatory Authority (OGRA) to publicly release petroleum pricing data on a daily basis. The initiative is expected to make the fuel pricing mechanism more transparent and improve public confidence in the process.
The government is working on the complete digitization of Pakistan’s petroleum supply chain, enabling real-time monitoring of imports, storage, transportation, and retail sales. The digital system is intended to tighten oversight, improve efficiency, and curb irregularities across the sector.
Efforts are also underway to reduce Pakistan’s dependence on imported diesel. As part of proposed changes to the refinery policy, authorities are evaluating multiple options to expand the capacity of domestic refineries and increase local diesel production, a move aimed at making the country’s energy sector more resilient against external supply shocks.
Officials said Ministry of Energy is preparing a comprehensive package of recommendations covering petroleum pricing reforms, supply stability, strategic fuel reserve management, and the country’s long-term energy policy.
If approved, the proposals could pave the way for one of the most significant overhauls of Pakistan’s petroleum pricing framework in recent years, changing how fuel prices are determined and how the country responds to global energy market disruptions.
On Monday, Petroleum Minister Ali Pervaiz Malik said Pakistan is planning reforms to make its fuel pricing system more transparent and resilient amid global oil market uncertainty.
The government committee proposed publishing daily Platts pricing data, operating the Petroleum Price Stabilization Fund under a rules-based framework, and digitizing the oil supply chain. The government is also considering policy changes to boost domestic diesel production and reduce reliance on imports.
Malik said petrol prices in Pakistan remain lower than those in Bangladesh, Sri Lanka, and Türkiye, and the committee will soon submit its recommendations to Prime Minister Shehbaz Sharif for approval.
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