Daily Fuel Price Updates Start Today

The federal government has approved a new mechanism under which petrol and diesel prices will be determined daily, replacing the existing fortnightly pricing system in an effort to align domestic fuel prices more closely with international markets.

According to official documents, the new pricing system takes effect immediately, with the Oil and Gas Regulatory Authority (OGRA) set to publish updated ex depot prices for petrol and high speed diesel on its website every working day.

Under the revised mechanism, fuel prices will be linked to the seven day average of international benchmark prices. However, no revisions will be made on Saturdays and Sundays, meaning prices will remain unchanged over the weekend.

The documents state that OGRA will no longer require prior government approval to determine daily ex depot prices. Petrol prices will be calculated based on import costs and applicable premiums.

In periods when imports are not taking place, prices will instead be determined using the annual average import premium. High speed diesel prices will also be based on import costs and the rolling seven day average of international prices.

The government has clarified that the Petroleum Development Levy (PDL) will not exceed the ceiling approved by the federal cabinet. Any changes to the levy will continue to require approval from the Ministry of Finance.

To improve transparency, OGRA will also publish daily international reference prices for petroleum products on its website alongside the revised domestic prices.

The new policy also introduces changes to fuel imports. From 2027, only Pakistan State Oil (PSO) will be allowed to import high speed diesel, while oil marketing companies (OMCs) will continue to import petrol according to their respective market shares.

The government has also warned that OMCs found violating import conditions could be barred from importing fuel for up to nine months. Daily pricing will also apply to kerosene oil and light diesel oil, with OGRA directed to implement the new pricing mechanism immediately.