The government has decided to keep the prices of petrol and high-speed diesel unchanged until July 27, following the implementation of a new daily petroleum pricing mechanism aimed at ensuring greater transparency and quicker adjustment to international oil market fluctuations.
The Oil and Gas Regulatory Authority (Ogra) updates petroleum product prices on a daily basis on its website under the new system, allowing the impact of changes in global oil prices to be passed on to consumers more promptly.
According to Petroleum Minister Ali Pervaiz Malik, the daily pricing mechanism is based on the seven-day average of international petroleum prices to bring Pakistan’s fuel pricing system in line with international practices.
The move comes amid volatility in global oil markets due to renewed tensions in the Middle East. Following the escalation of conflict in the region, the government shifted from the previous fortnightly fuel price review system to a weekly mechanism and later introduced the daily review framework.
The government had earlier introduced weekly fuel price reviews after the Middle East conflict intensified on February 28, when Israel and the United States launched attacks on Iran, leading Tehran to close the Strait of Hormuz, a key route for global energy supplies.
Tensions increased further after the collapse of a fragile June truce between Tehran and Washington, raising concerns over a wider conflict and disruptions to energy flows through the strategic waterway.
Details of New Fuel Pricing Framework
According to an official document, the federal cabinet-approved petroleum pricing mechanism authorises Ogra to announce daily ex-depot prices of petrol and high-speed diesel.
Under the new framework, fuel prices will be calculated using the average international market prices recorded over the previous seven days.
The regulator will not require prior approval from the prime minister or the federal government before announcing daily fuel prices. However, 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 further clarified that the petroleum levy cannot exceed the limit approved by the federal cabinet, while any increase or decrease in the levy rate will require approval from the Finance Division.
Changes in Fuel Import Policy
The new framework also includes revised fuel import arrangements for the fiscal year 2026-27.
Under the updated policy, imports of high-speed diesel will be handled exclusively through Pakistan State Oil (PSO), while oil marketing companies will be allowed to import petrol according to their respective market shares.
Companies that fail to meet their import obligations or required fuel upliftment targets will not be granted fresh import permissions for up to nine months.
The document also stated that prices of kerosene oil and light diesel oil will be determined on a daily basis, with relevant authorities directed to ensure immediate implementation of the new pricing mechanism.