The federal government has approved a new pricing mechanism for petroleum products, allowing OGRA to announce daily fuel prices without separate approval from the prime minister or federal cabinet. The move aims to introduce a more market-based pricing system in Pakistan.
According to official documents, OGRA will issue daily ex-depot prices for petrol and high-speed diesel under the new mechanism. The regulator will calculate prices based on the average global market rates of the previous seven days.
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The documents state that existing prices will remain unchanged on Saturdays and Sundays. Meanwhile, prices of kerosene oil and light diesel oil will also be revised daily under the updated system.
Additionally, petroleum levy cannot exceed the limit approved by the federal cabinet. Any change in the levy rate will require approval from the Finance Division. The government has directed relevant institutions to ensure immediate implementation.
Under the new framework, Pakistan State Oil (PSO) will exclusively import high-speed diesel during the fiscal year 2026-27. However, oil marketing companies will be allowed to import petrol according to their market share.
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Companies that fail to complete import commitments or lifting requirements will face restrictions. According to the documents, such companies will not receive new import permissions for nine months. The policy aims to improve supply management and market discipline.
The revised pricing system is expected to change the process of petroleum price adjustments in Pakistan. Meanwhile, authorities will monitor implementation to ensure compliance with the new rules. Further details may emerge after the mechanism becomes fully operational.