ISLAMABAD – Pakistan government decided to revise petrol and diesel prices every day instead of every seven days, a rare decision which, according to Petroleum Minister Ali Pervaiz Malik was “painful” but much needed to protect the economy and improve transparency.
Addressing a press conference in Islamabad, Federal Minister for Petroleum confirmed that the Oil and Gas Regulatory Authority (OGRA) has been directed to determine petroleum prices on a daily basis and publish the updated rates on its official website. The decision, approved by Prime Minister Shehbaz Sharif and the federal cabinet, marks the government’s first major step toward the deregulation of petroleum pricing.
The new policy means that any rise or fall in international oil prices will now be reflected in Pakistan’s fuel prices almost immediately, ending the weekly adjustment mechanism that had long been in place. The government acknowledged that daily fuel price revisions may not be easy for the public to accept, particularly at a time when global oil markets are once again under pressure due to the conflict in the Middle East.
Malik said diesel prices have already surged sharply in international markets, making it impossible to delay adjustments without placing additional financial strain on the state. Officials argued that the new mechanism is intended to bring greater transparency to Pakistan’s fuel pricing system. OGRA will not only announce prices every day but will also explain how retail fuel prices are calculated, including the impact of international oil prices, taxes, levies, freight costs, and other components.
Information Minister Atta Tarar defended the decision, saying the previous weekly system often resulted in consumers facing large price hikes, or delayed relief when global oil prices declined. Masses repeatedly demanded that reductions in international oil prices should be passed on immediately, Tarar said, saying the only way to achieve that is through daily price adjustments.
He also warned that the government would take strict action against any petrol pumps or oil marketing companies found hoarding fuel to exploit price movements. The government’s announcement comes amid renewed volatility in global energy markets, driven largely by geopolitical tensions in the Middle East.
Officials said recent spikes in crude oil, particularly diesel, highlighted the limitations of Pakistan’s weekly pricing model, prompting the move to daily revisions that more closely track international market trends. Industry representatives believe the policy could reduce the “price shock” that consumers have experienced under the previous system.
Deregulation could also increase competition among oil marketing companies, eventually allowing consumers to choose between retailers offering different prices, a model already placed in many international markets. However, experts clarified that the government will continue to control petroleum levies and regulate profit margins for oil marketing companies.
Meanwhile, petrol dealers questioned how daily pricing would work in practice, noting that fuel transported from Karachi can take at least three days to reach many parts of the country. They argue that matching daily retail prices with fuel purchased days earlier could become financially unsustainable.
Retailers Association had already been planning protest action before the announcement, and a fresh strategy, including the possibility of nationwide demonstrations or strikes, is expected to be announced soon.
