Daily fuel pricing to ensure transparency, curb market abuse: Ali Pervaiz Malik

• Petroleum minister says new mechanism will promote fair, market-based fuel prices

• Industry welcomes shift from weekly to daily pricing as key deregulation reform

• Ogra, Petroleum Division finalising SOPs for smooth implementation

• Government assures stakeholders of support during transition to new pricing regime

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik on Saturday said the government's decision to introduce a daily petroleum pricing mechanism would help curb market abuse, eliminate opportunities for windfall gains and establish a more transparent, competitive and consumer-friendly pricing system, describing the reform as a major step towards a market-driven petroleum sector.

Speaking at a meeting with key stakeholders from the petroleum industry, the minister said the new mechanism would strengthen competition, improve transparency and ensure fair, market-based prices for consumers while reducing the scope for price distortions.

وزیر پیٹرولیم علی پرویز ملک نے کہا ہے کہ پیٹرولیم مصنوعات کی قیمتوں کے روزانہ تعین کے نظام کا نفاذ ملکی معیشت میں ایک بڑی اور اہم تبدیلی ہے۔ اس اقدام سے ملک مسابقتی اور مارکیٹ پر مبنی معیشت کی جانب بڑھے گا۔ @AliPervaiz450 #News #RadioPakistan pic.twitter.com/ZBumlJZMWW

— ریڈیوپاکستان (@PBCofficialNews) July 18, 2026

The meeting was held a day after the minister announced that retail petroleum prices would be determined on a daily basis in response to fluctuations in international oil markets following renewed hostilities between Iran and the United States.

Under the new mechanism, retail petroleum prices will be determined through a transparent, formula-based system driven by market fundamentals, reducing the scope for political intervention while shielding consumers from abrupt price distortions.

According to a statement issued by the Petroleum Division after the meeting, representatives of the Oil and Gas Regulatory Authority (Ogra), Oil Companies Advisory Council (OCAC), Oil Marketing Association of Pakistan (OMAP), refineries, oil marketing companies (OMCs) and senior officials of the Petroleum Division attended the session to discuss implementation of the new pricing mechanism.

The statement said the meeting was convened to brief industry stakeholders on the transition from weekly to daily petroleum price adjustments and to seek feedback on implementation challenges to ensure a smooth and effective rollout.

The petroleum industry broadly welcomed the initiative, describing it as a positive step towards deregulating Pakistan's petroleum sector and creating a more competitive pricing environment.

Minster Malik informed participants that the reform had been introduced on the directive of Prime Minister Muhammad Shehbaz Sharif and approved by the federal cabinet as part of the government's commitment to establishing a rules-based petroleum pricing regime.

Addressing the meeting, the minister said the daily pricing mechanism represented a fundamental shift towards a competitive, market-driven economy by ending reliance on the weekly fuel price announcement cycle and mandatory government approval.

Officials informed the meeting that the daily pricing mechanism forms a key component of the government's phased deregulation strategy aimed at gradually reducing state intervention and allowing market forces to determine petroleum prices, similar to the daily movement of exchange rates.

The minister further said the Petroleum Division, in consultation with Ogra and industry stakeholders, was finalising comprehensive standard operating procedures (SOPs) to facilitate a seamless transition to the new pricing regime.

He added that technical matters, including the Inland Freight Equalisation Margin (IFEM), refinery adjustments and true-up mechanisms, were being addressed through close coordination with all stakeholders.

Ogra informed the meeting that it had aligned its internal systems to implement the new framework and was upgrading its data dissemination mechanisms to publish daily petroleum price information, further enhancing transparency for consumers.

The meeting also reviewed operational matters relating to supply chain logistics, inventory management and the availability of real-time data to support the implementation process.

The government assured industry stakeholders of its full support in addressing operational challenges and informed them that a dedicated committee had been constituted to oversee the transition and resolve implementation issues through consultation and consensus.

Minster Malik stressed that Ogra, district administrations, oil marketing companies, petroleum dealers, OCAC and OMAP all have important roles to play in ensuring the successful implementation of the reform.

He acknowledged that major structural reforms often involve implementation challenges but reiterated the government's commitment to protecting consumers' interests while ensuring the long-term sustainability and efficiency of the petroleum sector.

Representatives of OCAC, OMAP, refineries and oil marketing companies also shared their views during the meeting and highlighted operational concerns relating to the implementation of the daily pricing mechanism.

The minister assured participants that all genuine concerns would be addressed through continued consultation and collaborative engagement with industry stakeholders.

He directed the Petroleum Division and Ogra to hold follow-up meetings with industry representatives to further refine the pricing formula, resolve outstanding technical issues and ensure the successful implementation of the new system.

The government has been announcing weekly fuel price revisions since early March alongside measures aimed at conserving petroleum products amid concerns over possible oil supply disruptions resulting from the ongoing conflict in the Middle East. In April, the federal government also introduced targeted relief measures to provide subsidised fuel.

A day earlier, the government increased the prices of petrol by Rs5.44 per litre and high-speed diesel by Rs31.05 per litre, with the revised prices taking immediate effect for three days until July 20, reflecting higher import premiums and rising international oil prices following renewed regional tensions.