What’s Behind Pakistan’s New Fuel Price System?
News Desk
Islamabad: Pakistan has officially entered a new era of daily fuel pricing, with the Oil and Gas Regulatory Authority (OGRA) announcing reduced prices for petrol and high-speed diesel under the country’s newly introduced pricing mechanism.
According to a notification issued on Tuesday, the price of petrol has been cut by Rs4.08 per litre, bringing the new ex-depot price to Rs331.95 per litre. High-speed diesel has also become cheaper by Rs2.45 per litre, with the new price fixed at Rs389.93 per litre.
The revised prices took effect on August 4, marking one of the first adjustments under the federal government’s daily petroleum pricing framework.
Daily pricing
Under the new system approved by the federal cabinet, OGRA will revise petrol and diesel prices every day based on the average international petroleum prices recorded over the previous seven days.
Unlike the previous fortnightly pricing mechanism, the regulator is now empowered to announce daily ex-depot prices without requiring prior approval from the prime minister or the federal government.
However, prices announced on Fridays will remain unchanged throughout Saturdays and Sundays.
The framework also provides that daily Platts reference prices will be used for calculations from July 1, 2026.
Petroleum levy and import rules
The approved mechanism maintains that the petroleum levy cannot exceed the ceiling set by the federal cabinet. Any change in the levy will require approval from the Finance Division.
The government has also revised fuel import arrangements for the 2026-27 fiscal year. Imports of high-speed diesel will be handled exclusively by Pakistan State Oil (PSO), while other oil marketing companies will be permitted to import petrol according to their respective market shares.
Companies that fail to meet import or fuel upliftment obligations may face a suspension of fresh import permissions for up to nine months.
The new policy further extends daily pricing to kerosene oil and light diesel oil, with authorities directed to ensure the immediate implementation of the revised petroleum pricing mechanism across the country.
