Pakistan’s federal cabinet has approved a new petroleum pricing mechanism that will introduce daily revisions in the prices of petroleum products, marking a significant shift from the existing pricing system.
The new framework aims to align domestic fuel prices more closely with international market trends while enhancing transparency in the pricing process.
The Oil and Gas Regulatory Authority (OGRA) will announce the ex-depot prices of petrol and high-speed diesel on a daily basis. The revised prices will be determined using the average international market prices recorded over the previous seven days.
The documents reveal that OGRA will have the authority to announce the daily prices independently, without requiring prior approval from the Prime Minister or the federal government.
However, prices announced on weekdays will remain unchanged during Saturdays and Sundays, with the last notified rates continuing to apply over the weekend.
The new pricing system is scheduled to come into effect from July 1, 2026, when OGRA will also begin issuing daily Platts reference prices, which serve as a key benchmark for petroleum pricing in international markets.
The petroleum levy on fuel products cannot exceed the maximum limit determined by the federal cabinet. Any changes to the levy rate will require approval from the Finance Division, ensuring that adjustments remain subject to financial oversight.
The policy also outlines new import arrangements for the fiscal year 2026-27. During this period, the import of high-speed diesel will be exclusively handled by Pakistan State Oil (PSO).
Meanwhile, other oil marketing companies (OMCs) will be allowed to import petrol in accordance with their respective market shares.
The policy introduces stricter measures for importers. Companies that default on import commitments or fail to lift allocated petroleum products may be barred from receiving new import permissions for up to nine months.
The prices of kerosene oil and light diesel oil will also be determined and announced on a daily basis under the revised mechanism.
The official document further recommends the immediate implementation of the new pricing framework to ensure a smooth transition to the daily pricing model.
