The Oil and Gas Regulatory Authority (Ogra) has revised petroleum prices on a “daily basis” on its website to ensure transparency and allow the immediate impact of international price fluctuations to be passed on to consumers.
According to revised notification, it cut the price of petrol by Rs 0.35 per litre and increased the rate of diesel by Rs 5.71 per litre. The new prices of petrol and diesel now stand at Rs 315.8 and Rs 360.06 per litre, respectively.
The daily pricing is based on a seven-day weekly average of international market prices to align with international standards, according to Petroleum Minister Ali Pervaiz Malik
Amid volatility in the global oil rates on the back of renewed hostilities in the Middle East, the government decided to switch to a daily fuel price review mechanism.
The government had introduced a weekly fuel price review system after the conflict in the Middle East began on February 28, when Israel and the United States attacked Iran, leading Tehran to shut the Strait of Hormuz – the main route before the war for around a fifth of global energy supplies. Tensions have mounted since a fragile June truce between Tehran and Washington collapsed, reviving fears of full-scale war and disrupting energy flows through the Strait. Previously, the petroleum rates were revised fortnightly.
An official document has revealed key details of the federal cabinet-approved petroleum pricing mechanism, under which the Ogra will issue ex-depot prices of petrol and high-speed diesel on a daily basis.
Under the new framework, fuel prices will be determined using the average international market prices recorded over the previous seven days.
The regulator will be authorised to announce daily prices without requiring prior approval from the prime minister or the federal government, while prices notified on Fridays will remain unchanged on Saturdays and Sundays. The document stated that Ogra will publish daily Platts reference prices from July 1, 2026.
It also stipulated that the petroleum levy cannot exceed the limit approved by the federal cabinet, while any change in the levy rate will require approval from the Finance Division.