Pakistan to Introduce Daily Fuel Price Updates: Government Says Move Will Boost Transparency

Pakistan is preparing to change the way petroleum prices are announced, replacing the current periodic pricing system with daily fuel price adjustments. According to Federal Petroleum Minister Ali Pervaiz Malik, the move is designed to improve transparency, encourage competition, and reduce profiteering and hoarding in the petroleum market.

Speaking during an interview on Center Stage, the minister explained how the new pricing mechanism is expected to benefit both consumers and the petroleum industry.

Why Is the Government Changing the Fuel Pricing System?

Ali Pervaiz Malik said the primary objective of introducing daily petroleum price updates is to make the pricing system more transparent.

Under the current system, fuel prices are revised after a fixed period. According to the minister, this often creates opportunities for some market participants to delay fuel sales in anticipation of higher prices, leading to artificial shortages and unfair profits.

With prices changing on a daily basis, the government believes these practices will become much more difficult.

Expected Benefits of Daily Fuel Pricing

Greater transparency in fuel pricing
Reduced hoarding of petroleum products
Lower chances of profiteering
Faster transfer of price increases or decreases to consumers
Improved competition within the petroleum sector

Industry Stakeholders Have Been Consulted

The petroleum minister said the government has already held meetings with major petroleum industry stakeholders regarding the proposed pricing mechanism.

Most industry participants have expressed support for the policy.
Further consultations will be held with petroleum companies and petrol pump owners.
Any concerns raised by stakeholders will be addressed before implementation.

Ali Pervaiz Malik said he is confident that after these discussions, petrol pump owners' reservations will largely be resolved.

OGRA to Lead Price Determination

The minister stated that the Oil and Gas Regulatory Authority (OGRA) will serve as the independent regulator responsible for determining petroleum prices under the new system.

He added that pricing decisions will be made without political interference, helping create a more transparent and competitive market.

Deregulation Planned Within Weeks

Ali Pervaiz Malik revealed that the government is moving toward deregulating the petroleum pricing system.

A high-level committee formed by the Prime Minister has already held four meetings.
The government aims to move toward deregulation within the next 15 to 20 days.
A broader petroleum sector reform package is expected to be introduced within one month.

Government to Monitor the Fuel Supply Chain

According to the minister, a dedicated body has been established by the Prime Minister to monitor the petroleum supply chain and detect any signs of hoarding or supply disruptions.

The objective is to ensure transparency throughout the distribution network while preventing artificial shortages in the market.

Pakistan to Expand Domestic Oil Exploration

Ali Pervaiz Malik said Pakistan is working to reduce dependence on imported energy by encouraging domestic oil exploration.

Türkiye's energy minister is expected to visit Pakistan in September or October.
Local companies will be encouraged to increase oil exploration activities.
Pakistan is actively working to discover additional domestic energy resources.
The minister stated that the country already possesses commercially viable oil reserves.

He said increasing local production would help reduce Pakistan's reliance on external supply routes such as the Strait of Hormuz.

Indirect Taxes Should Be Reduced

During the discussion, the petroleum minister also acknowledged that indirect taxes place a greater financial burden on lower-income citizens.

He said indirect taxes should be reduced to ease the economic pressure on the public.

Conclusion

Pakistan's proposed transition to daily petroleum price updates represents a significant shift in the country's fuel pricing mechanism. The government believes the new system will improve transparency, discourage hoarding and profiteering, strengthen competition, and allow fuel price changes to reach consumers more quickly. Alongside deregulation, improved supply chain monitoring, and plans to expand domestic oil exploration, officials say a broader package of petroleum sector reforms will be unveiled in the coming weeks.