Daily Fuel Pricing Pakistan Moves Towards Market-Based Petroleum Rate System

Pakistan is moving towards Daily Fuel Pricing as the federal government prepares to replace the existing weekly petroleum price adjustment system with a daily market-based mechanism.

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Federal Minister for Petroleum Ali Pervaiz Malik chaired a high-level meeting on Saturday with regulators, oil companies and industry representatives to discuss the transition. Officials said the new system aims to improve transparency, increase competition and provide consumers with more accurate fuel prices.

The meeting included officials from the Oil and Gas Regulatory Authority (OGRA), Oil Companies Advisory Council (OCAC), Oil Marketing Association of Pakistan (OMAP), refineries, oil marketing companies and the Petroleum Division.

Malik said the reform follows a directive from Prime Minister Shehbaz Sharif and has already received approval from the federal cabinet. He described the move as part of efforts to establish a rules-based petroleum pricing system.

Under the proposed system, fuel prices will follow a transparent formula based on market conditions. The government expects the change to reduce political influence and limit sudden price distortions.

The petroleum minister said daily adjustments would replace the previous weekly pricing cycle and reduce dependence on government approval for every price revision.

He added that the new approach would help prevent market manipulation and discourage excessive profits by creating a more competitive environment.

Officials said the reform is part of a gradual deregulation plan aimed at allowing market forces to play a greater role in determining fuel prices.

OGRA and industry stakeholders are currently developing standard operating procedures for the transition. The regulator has also updated its internal systems and improved data-sharing mechanisms to publish daily price information.

The meeting also reviewed challenges related to fuel supply chains, inventory management and access to real-time market data. The government has formed a committee to supervise implementation and address concerns raised by stakeholders.

Malik said OGRA, district administrations, oil companies, dealers and industry bodies would need to work together to ensure the success of the reform.

Industry representatives welcomed the proposed shift but called for greater clarity on the pricing mechanism and implementation process.

The OCAC said daily pricing could benefit consumers by improving market competition, service quality and transparency. The council also supported broader deregulation of Pakistan’s petroleum sector.

Adil Khattak, CEO of Attock Refinery Limited and chairman of the Energy Committee at the Overseas Investors Chamber of Commerce and Industry, said the move shows the government’s intention to make the market more responsive.

However, he warned that the success of the reform depends on a strong regulatory framework rather than only changing the frequency of price updates.

Khattak urged the government to share details of the revised pricing formula, implementation plan and operating procedures with all stakeholders.

He also highlighted that fuel prices, imports and inventories remain subject to various regulations. He said shifting to daily price changes without addressing these issues could create challenges for companies managing costs and cash flows.