ISLAMABAD – Pakistanis used to get the new petrol price on the 1st and 16th of every month with changes, and the fortnightly reviews became weekly amid US-Iran war in March this year, and now Pakistani government announced new daily petrol pricing formula, meaning fuel rates will be revised every working day based on global oil prices and import costs.
According to a notification issued by the Ministry of Energy (Petroleum Division), the new mechanism will link domestic fuel prices more closely with international crude oil prices, Platts Arab Gulf Assessments, and actual import costs, allowing consumers to see the impact of global market movements much sooner.
Under the new policy, petrol, high-speed diesel, and other petroleum product prices will be announced only from Monday to Friday. Prices will remain unchanged on Saturdays and Sundays, ensuring stability over the weekend.
One of the biggest changes introduced under the new framework is that daily price revisions will no longer require separate approval from the Prime Minister or the Federal Cabinet. Instead, prices will be determined automatically using the average international prices of crude oil and petroleum products over the previous seven working days, along with prevailing import costs.
The government clarified that key fiscal components, including Petroleum Development Levy (PDL), customs duty, climate levy, and Oil Marketing Companies’ (OMCs) margins, will remain under federal control. OGRA will not have the authority to alter these charges, and any revisions will continue to require federal government approval.
The notification lays out detailed formula for calculating the import premium. If Pakistan State Oil (PSO) imports a new petroleum cargo during the previous seven working days, the actual premium and associated costs of that shipment will be factored into the price. If no fresh cargo is imported during that period, authorities will instead use the average import premium recorded from January 1 of the current year to avoid unnecessary price volatility.
The government introduced the daily pricing system on a nine-month trial basis, during which it will closely monitor market performance, supply chain efficiency, consumer impact, and overall price stability before deciding on its long-term implementation.
The government announced nationwide crackdown on hoarding, artificial shortages, black marketing, and profiteering. Authorities warned that any Oil Marketing Company or petrol pump found violating official prices, stockpiling fuel, or creating artificial shortages will face strict legal action.
Acting on PM directives, the Federal Investigation Agency (FIA), Intelligence Bureau (IB), and district administrations have been empowered to launch immediate enforcement operations. Officials have also been authorized to suspend or cancel the licences of companies and petrol pumps found guilty of violating the new rules.
The government says the daily pricing mechanism is aimed at making Pakistan’s petroleum market more transparent, competitive, and responsive, ensuring that fluctuations in international oil prices are passed on to consumers more quickly while discouraging market manipulation and improving the overall efficiency of the fuel pricing system.
Daily Petrol Price mechanism puts Pump Owners, OMCs under Pressure
