Federal Minister for Petroleum Ali Pervaiz Malik says move is aimed at ensuring greater transparency in the pricing mechanism for petroleum product
ISLAMABAD: (UrduPoint/Pakistan Point News-July 17th, 2026) The federal government has decided to authorize the Oil and Gas Regulatory Authority (OGRA) to determine petroleum prices on a daily basis in line with fluctuations in the international oil market, Federal Minister for Petroleum Ali Pervaiz Malik announced on Friday.
Speaking at a joint press conference with Federal Minister for Information Attaullah Tarar, Ali Pervaiz Malik said the move is aimed at ensuring greater transparency in the pricing mechanism for petroleum products.
He said OGRA will independently calculate fuel prices every day based on international market trends. Under the new system, prices will decrease whenever global oil prices decline and increase when international rates rise. Updated prices will be published daily on OGRA's official website.
The petroleum minister said the decision was taken to strengthen institutional transparency and improve the fuel pricing mechanism. He added that petroleum levy and carbon-related charges remain in line with Pakistan's international commitments, while no additional burden beyond those obligations has been imposed on the public.
Malik said the government has continued to protect consumers from excessive price increases and maintained that there has been no increase in the petroleum levy beyond existing commitments.
Information Minister Attaullah Tarar said the government had previously absorbed Rs129 billion in subsidies when international oil prices surged to provide relief to consumers. He added that OGRA would soon release the detailed pricing methodology for the new system.
Tarar noted that petroleum prices are currently determined on the basis of weekly average international prices, adding that several countries already follow mechanisms that directly link domestic fuel prices to global market fluctuations.
He acknowledged that rising oil prices affect the broader economy and increase the cost of living, but said the government was fully aware of these challenges. According to him, daily pricing will ensure that changes in international oil prices are reflected more transparently in domestic fuel prices.
The information minister also said the petroleum levy remains below the level imposed during the wartime period and has not been increased. He emphasized that the new daily pricing mechanism would make the system more transparent.
Tarar further stressed the need for Pakistan to gradually transition toward electric motorcycles and electric vehicles to reduce dependence on imported petroleum products.
He also urged all stakeholders to avoid politicizing the issue, saying the government is closely monitoring oil marketing companies and remains open to constructive suggestions for improving the sector.
