ISLAMABAD – Pakistan announced new petroleum pricing mechanism, and now Oil and Gas Regulatory Authority (OGRA) started preparations to implement daily petroleum price notification system, replacing existing periodic pricing model.
According to OGRA officials, the regulator is fully prepared to roll out the new system and is upgrading its digital infrastructure to ensure the timely publication of daily fuel prices. The development emerged during a high-level consultative meeting attended by representatives from OGRA, the Oil Companies Advisory Council (OCAC), the Oil Marketing Association of Pakistan (OMAP), refineries, Oil Marketing Companies (OMCs), and officials from the Petroleum Division. Industry stakeholders welcomed the proposed shift, calling it a step toward a more market-driven pricing mechanism.
Federal Minister for Petroleum Ali Pervaiz Malik said petroleum prices would be determined through a transparent formula that reflects real-time market conditions. He said the move is aimed at minimizing profiteering, exploitation, and opportunities for extraordinary financial gains by market players.
He said the reforms are key component of government’s phased deregulation strategy, adding that the objective is to shield consumers from price distortions caused by political considerations while allowing prices to better reflect actual market dynamics.
Officials informed participants that the initiative is being introduced on the directives of Prime Minister Shehbaz Sharif as part of broader efforts to reduce government intervention in the petroleum sector and promote a competitive fuel market.
OGRA, OCAC, OMAP, refineries, and oil marketing companies presented recommendations on the proposed framework. Ali Pervaiz Malik said Standard Operating Procedures (SOPs) for the daily pricing mechanism are being finalized through consultations with the industry and the regulator.
OGRA officials also confirmed that the authority is enhancing its systems to facilitate the seamless and timely release of daily petroleum prices once the new mechanism comes into effect.
The meeting further reviewed key operational challenges, including supply chain management, inventory planning, stock maintenance, and the availability of real-time market data—critical elements for the successful implementation of daily fuel pricing.
To oversee the transition, the petroleum minister announced the formation of a special committee tasked with addressing implementation challenges through consensus. He directed the Petroleum Division and OGRA to continue engaging with industry stakeholders and finalize all technical aspects before the system is launched.
The government, he said, remains committed to protecting consumers while ensuring the long-term stability and sustainability of Pakistan’s petroleum industry.
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