The federal government on Friday announced that petroleum product prices would now be determined on a daily basis following the renewed escalation in the region after the recent exchange of strikes between the United States and Iran.

Speaking at a press conference alongside Information Minister Ataullah Tarar, Petroleum Minister Ali Pervaiz Malik said the decision was taken during a meeting of the federal cabinet chaired by the prime minister.

Malik said the move aimed to enhance transparency in the pricing mechanism without exposing the state to financial risks.

“The federal cabinet and the prime minister decided that, without exposing the state to any risk, the responsibility would be assigned to Ogra to determine petroleum prices daily in line with international market trends. Ogra will not only publish on its website the Platts benchmark rates, which are used globally to determine petroleum prices, but will also disclose the components that make up the final price consumers pay at petrol pumps. Ogra has been directed to publish all these details so that people know why these prices are unavoidable,” he said.

Malik said it was unfortunate that despite Pakistan’s leadership making “tremendous efforts” to steer the region towards reconciliation and a lasting ceasefire, tensions had once again begun escalating.

“It is unfortunate that despite the sincere efforts made by our leadership, especially Prime Minister Shehbaz Sharif, the Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, to move the region towards reconciliation and a permanent ceasefire, tensions are once again rising,” he said.

The minister said petroleum prices, which had already witnessed sharp fluctuations during previous bouts of regional tensions, were once again on the rise.

He said diesel prices had increased significantly over the past few days, adding that the Platts benchmark for diesel had risen from $110 per barrel to $140 per barrel as of Friday.

Referring to petrol prices, Malik said the Platts benchmark, which had been around $89 per barrel, had climbed to nearly $100 per barrel, triggering another increase in energy prices across international markets.

The minister thanked the public for showing patience despite the hardships, saying people had endured the burden alongside the government despite a Rs130 billion subsidy provided by the government and a targeted subsidy programme being implemented in coordination with the provincial governments.

“Today’s decision is aimed at bringing greater transparency to the entire system so that people themselves can understand why increases in petroleum prices become unavoidable,” he said.

Malik added that if the government had adopted the same approach taken by a previous administration in 2022, the public would have continued paying the price for years in the form of higher inflation.

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More to follow.