ISLAMABAD: Pakistan Petroleum Minister Ali Pervaiz Malik on Saturday said the introduction of daily fuel price adjustments would help curb market abuse, eliminate opportunities for windfall gains, and ensure greater transparency and fair pricing for consumers.
The minister made the remarks during a meeting with key petroleum sector stakeholders. He added that the reform would promote transparency, strengthen competition, and ensure fair, market-based prices for consumers.
Minister for Petroleum @AliPervaiz450 has said the daily pricing mechanism for petroleum products represents a fundamental shift towards a competitive, market-driven economy by ending dependence on the weekly price announcement cycle and mandatory government approval.…
— Radio Pakistan (@RadioPakistan) July 18, 2026
A fundamental shift toward market-driven economy
Addressing a meeting with key petroleum sector stakeholders, the minister described the daily pricing regime as a fundamental shift towards a competitive, market-driven economy.
“The reform will promote transparency, strengthen competition and ensure fair, market-based prices for consumers,” Malik said.
Under the new mechanism, retail petroleum prices will be determined through a transparent, formula-based system driven by market fundamentals. This approach reduces the scope for political intervention and shields consumers from sudden price distortions.
Read Also: Pakistan to Revise Fuel Prices Daily Amid Global Oil Market Volatility
Industry welcomes the reform
The meeting was attended by representatives of the Oil and Gas Regulatory Authority (OGRA), the Oil Companies Advisory Council (OCAC), the Oil Marketing Association of Pakistan (OMAP), refineries, oil marketing companies (OMCs), and senior officials of the Petroleum Division.
The move was widely welcomed by the petroleum industry, which described it as a positive step towards deregulating Pakistan’s petroleum sector.
Officials briefed the meeting that the daily pricing mechanism forms a key component of the government’s phased deregulation strategy, aimed at gradually reducing state intervention and allowing market forces to determine petroleum prices, similar to the daily movement of exchange rates.
Government commitment to reform
Malik informed the meeting that the reform had been introduced on the directive of Prime Minister Shehbaz Sharif and approved by the federal cabinet as part of the government’s commitment to establishing a rules-based petroleum pricing regime.
He added that the Petroleum Division, in consultation with Ogra and industry stakeholders, was finalising comprehensive standard operating procedures to facilitate the transition.
Technical matters, including the Inland Freight Equalisation Margin (IFEM), refinery adjustments, and true-up mechanisms, are being addressed through close coordination with stakeholders.
OGRA aligns systems for smooth transition
OGRA informed the meeting that it had aligned its internal systems to implement the new regime and was upgrading its data dissemination mechanisms to publish daily petroleum price information for greater public transparency.
The meeting also reviewed operational issues relating to supply chain logistics, inventory management, and the availability of real-time data.
Government assures support for implementation
The government assured stakeholders of its full support in addressing operational challenges and informed them that a dedicated committee had been constituted to oversee the transition and resolve implementation issues through consensus.
Malik stressed that OGRA, district administrations, OMCs, dealers, OCAC, and OMAP all have important roles in ensuring the reform’s success.
“Major reforms often present implementation challenges, but the government remains committed to protecting consumers’ interests while ensuring the long-term sustainability of the petroleum sector,” he said.
Stakeholder concerns to be addressed
Representatives from OCAC, OMAP, refineries, and OMCs shared their views and highlighted operational concerns regarding the implementation of the daily pricing mechanism.
Malik assured them that all genuine issues would be addressed through continued consultation and collaborative engagement. He ordered the Petroleum Division and OGRA to hold follow-up meetings with industry representatives to further refine the pricing formula and resolve outstanding technical issues.
Read Also: Pakistan Increases Petrol Price by Rs5.44, Diesel by Rs31.05 Per Litre
Recent price adjustments
The government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East.
A day earlier, the government increased petrol and diesel prices by Rs5.44 and Rs31.05 per litre, respectively, with immediate effect for the next three days until July 20, to pass on the impact of higher import premiums and global prices following renewed regional tensions.
Following the increase, the price of petrol stands at Rs316.15 per litre and HSD at Rs354.35 per litre.
With the introduction of daily fuel price adjustments, Pakistan takes a significant step toward a more transparent, competitive, and consumer-friendly petroleum sector, marking a new era in the country’s energy policy.
