ISLAMABAD: The federal government has announced a major overhaul of Pakistan’s fuel pricing system, replacing the previous weekly mechanism with daily petroleum price adjustments. Petroleum Minister Ali Pervaiz Malik described the move as the end of the traditional “petrol bomb,” saying consumers will now see fuel prices rise or fall in line with international market trends instead of facing sudden large increases.
Under the new framework, the Oil and Gas Regulatory Authority (OGRA) will determine and publish petrol and high-speed diesel prices every day based on the rolling seven-day average of international Platts benchmark prices. OGRA will also disclose the key components that make up retail fuel prices to improve transparency.
The government says the system is designed to pass on both increases and decreases in global oil prices to consumers without delay or political intervention. Officials believe the new mechanism will make fuel pricing more predictable and transparent while reducing the need for abrupt price hikes announced every week or fortnight.
However, the policy has drawn criticism from petrol pump owners and business groups, who warn that daily price fluctuations could create uncertainty for retailers and industries. The government has agreed to review the mechanism after a two-week trial period following consultations with stakeholders.
