Daily petroleum pricing mechanism: How OGRA will set petrol and diesel rates

The government’s new daily petroleum pricing mechanism has been unveiled, linking petrol and diesel rates with global oil market fluctuations and allowing OGRA to revise ex-depot prices on a daily basis without prior government approval.

According to the document, the Oil and Gas Regulatory Authority (OGRA) will issue new ex-depot prices every day on its official website.

Key Details

1. Petrol and diesel prices will be linked to the seven-day average international market rates.
2. There will be no changes in petroleum product prices on Saturdays and Sundays. OGRA will not require prior government approval for the daily determination of prices.
3. Petrol prices will be calculated daily based on import costs and premiums.
4. In the absence of imports, prices will be determined using the annual average premium.
5. Diesel prices will also be set according to import costs and the seven-day average rates.
6. The Petroleum Development Levy will not exceed the limit approved by the federal cabinet, while any changes to the levy will require approval from the Ministry of Finance.

OGRA will also publish international reference prices for petroleum products on its website. Daily disclosure of global prices has been made mandatory to ensure transparency.

From 2027, imports of high-speed diesel will be carried out exclusively by Pakistan State Oil (PSO), while oil marketing companies (OMCs) will be allowed to import petrol according to their market share.

OMCs violating import requirements will face disqualification for up to nine months. Prices of kerosene oil and light diesel oil will also be determined on a daily basis.

OGRA has been directed to immediately implement the new petroleum pricing system.

Business community slams daily petroleum pricing mechanism

The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly condemned the government’s decision to introduce a daily petroleum pricing mechanism, describing it as an anti-industry, anti-business and anti-public move that will further fuel inflation, undermine business confidence and increase uncertainty across the economy. Reacting to the government’s decision to revise petroleum product prices on a daily basis in line with fluctuations in the international market, BMP Chairman and former FPCCI President Mian Anjum Nisar said the move demonstrated that the government only acts with extraordinary speed when it comes to passing the burden […]

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