Pakistan’s government has moved a step closer to introducing daily fuel pricing, with Petroleum Minister Ali Pervaiz Malik holding consultations with key industry stakeholders on Saturday to discuss the proposed pricing mechanism and gather feedback on its implementation.
The high-level meeting brought together representatives from 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 from the Petroleum Division. The discussions focused on the planned transition from weekly fuel price adjustments to a daily fuel pricing system.
According to an official statement, the reform is part of the government’s broader strategy to deregulate Pakistan’s petroleum sector, enhance transparency, strengthen consumer protection and create a more competitive market. Officials said the new system is designed to align domestic fuel prices more closely with market conditions.
During the meeting, Ali Pervaiz Malik said the reform was introduced on the directive of the prime minister and approved by the federal cabinet as part of efforts to establish a rules-based petroleum pricing regime. Under the proposed mechanism, retail fuel prices would be determined through a transparent formula linked to market fundamentals instead of relying on weekly government announcements.
The minister said shifting to daily fuel pricing would reduce the possibility of market manipulation and windfall gains while ensuring that pricing reflects actual market movements. He added that the reform aims to minimize political intervention and promote a competitive, market-driven economy.
Officials informed participants that detailed Standard Operating Procedures (SOPs) are being prepared in consultation with OGRA and industry stakeholders. Technical issues, including the Inland Freight Equalisation Margin (IEFM), refinery adjustments, inventory management, supply chain logistics and true-up mechanisms, are also being finalized to ensure a smooth transition.
Industry representatives shared operational concerns regarding the implementation of the new system, while the government assured them that all genuine issues would be addressed through continued consultation. A dedicated committee has also been formed to oversee the rollout and facilitate the successful implementation of the daily fuel pricing regime.
