ISLAMABAD: The government has approved a new mechanism for the pricing of petroleum products under which petrol and diesel prices will be determined on a daily basis, according to official documents.
Under the new framework, the Oil and Gas Regulatory Authority (OGRA) will publish updated ex-depot prices for petrol and high-speed diesel on its website each day. The move is aimed at aligning domestic fuel prices more closely with international market trends and improving transparency in the pricing process.
According to the documents, fuel prices will be linked to the seven-day average of global petroleum rates. No price revisions will be made on Saturdays and Sundays, while OGRA will no longer require prior government approval to determine daily prices.
The pricing of petrol will be based on import costs and applicable premiums. In cases where imports do not take place, prices will be calculated using an annual average premium. High-speed diesel prices will also be determined on the basis of import costs and the seven-day average of international market rates.
The documents state that the Petroleum Development Levy (PDL) will not exceed limits approved by the federal cabinet. Any changes to the levy will require authorization from the Ministry of Finance.
In addition to the other transparency measures, OGRA is also required to announce the international benchmark prices of petroleum products on a daily basis.
Further, the policy envisages that after 2027, PSO will be the only importer of high-speed diesel whereas OMCs would be permitted to import petrol as per their respective market share.
Companies found violating import conditions could face disqualification for up to nine months, the documents added.
The daily pricing mechanism will also apply to kerosene oil and light diesel oil. OGRA has been directed to implement the new system with immediate effect.
