Big Change Ahead? Pakistan Likely to Revise Petrol Prices Every Day

The Pakistan government is considering a major change to the country’s petrol price mechanism by introducing a daily fuel price revision system. If approved, the new framework will allow the Oil and Gas Regulatory Authority (OGRA) to revise petrol prices in Pakistan every night instead of following the existing fortnightly schedule.

Sources in the Petroleum Division say the proposed system would decrease the direct involvement of the government in petroleum pricing. Rather, OGRA will be the only organisation to fix the prices of major petroleum products.

The proposed mechanism will involve OGRA fixing Motor Spirit (MS/Petrol), High-Speed Diesel (HSD), Light Diesel Oil (LDO) and Kerosene Oil (KO) daily rates. The new prices will be effective starting from 12:00 am (midnight) each day.

The government is taking all necessary measures to consider the proposal and is engaged in a comprehensive examination of fuel prices in the country, a Petroleum Division official told The News.

The scheme of petrol price change daily, if it is approved, would be one of the most significant changes in fuel pricing policy in Pakistan in recent years. At present petrol and diesel price is revised on every week, on recommendations from OGRA and approval by the federal government.

The proposed model aims to make petroleum product prices more responsive to global market trends while reducing delays in passing international price changes to consumers. However, the proposal is still under consideration, and no official implementation date has been announced.