ISLAMABAD – Pakistani government is considering major overhaul of Pakistan’s petroleum pricing mechanism by introducing daily fuel price revisions to limit government’s direct role in determining petroleum prices and hand greater authority to the Oil and Gas Regulatory Authority (OGRA).
The proposed system would authorize OGRA to determine the prices of Motor Spirit (MS/Petrol), High-Speed Diesel (HSD), Light Diesel Oil (LDO), and Kerosene Oil (KO) every night, with the revised rates taking effect from 12:00 a.m. daily.
A senior Petroleum Division official said the new mechanism is under consideration and aims to make fuel prices more responsive to fluctuations in the international oil market.
The proposal triggered strong opposition from the Pakistan Petrol Pump Owners Association, which called it “completely unacceptable” and warned that it could create serious operational and financial challenges for fuel retailers across the country.
Pumps association said the existing weekly pricing system has already severely impacted petrol pump businesses, making stock management, financial planning, and business stability increasingly difficult. It argued that shifting to daily price revisions would further intensify these problems.
Petrol pump owners are already struggling under the weekly pricing system, and daily changes will only deepen the crisis, as per the association. The association also raised questions at government’s policy for allegedly failing to consult key stakeholders before moving forward with the proposal.
Vice Chairman of the All Pakistan Petrol Pump Owners Association, Nauman Ali Butt, said it was “deeply regrettable” that petrol pump owners were not being taken into confidence over such a significant policy decision. He said no policy can move forward without consultation with the stakeholders directly affected by it.
The association urged the government to reconsider the proposed mechanism and engage with petrol pump owners before finalizing any decision. It has also recommended that, instead of daily or weekly revisions, fuel prices should be determined on at least a monthly basis to ensure business stability and improve inventory management.
What is Pakistan’s New Fuel Pricing Mechanism for Petrol and Diesel Rates?
About the Author
