Pakistan Introduces Daily Petroleum Price Adjustment System, Issues New Guidelines to OGRA

Islamabad: The federal government has introduced a new mechanism for determining petroleum product prices, issuing fresh guidelines to the Oil and Gas Regulatory Authority (OGRA) for the implementation of a daily pricing system.

According to official documents, OGRA will publish updated prices for petroleum products on its website every day without requiring prior approval from the federal government. However, prices will remain unchanged on Saturdays and Sundays.

Under the new policy, the prices of petrol and high-speed diesel (HSD) will be linked to the average international market rates over the previous seven working days. Petrol prices will be calculated daily based on import costs and applicable premiums. In cases where no imports take place, prices will be determined using the annual average premium.

Similarly, high-speed diesel prices will also be based on import costs and the seven-day average of international prices.

To enhance transparency, OGRA has been directed to publish daily Platts international reference prices on its website from July 1, 2026, allowing consumers and industry stakeholders to monitor global fuel price trends.

The guidelines state that the petroleum levy cannot exceed the limit approved by the federal cabinet. Any changes to the levy will require prior approval from the Ministry of Finance.

The government has also introduced changes to the fuel import policy. During fiscal year 2027, only Pakistan State Oil (PSO) will be permitted to import high-speed diesel, while oil marketing companies (OMCs) will be allowed to import petrol according to their respective market shares.

The documents further state that OMCs violating import conditions will be declared ineligible to import petroleum products for a period of nine months.

In addition to petrol and diesel, the prices of kerosene oil and light diesel oil will also be revised on a daily basis under the new pricing mechanism.

The federal government has directed OGRA to implement the new pricing system with immediate effect, aiming to improve transparency, align domestic fuel prices more closely with international markets, and ensure timely public disclosure of petroleum price updates.