The government is considering a major overhaul of Pakistan’s petroleum pricing mechanism that would allow the Oil and Gas Regulatory Authority (Ogra) to set fuel prices daily, reducing the federal government’s direct role in the process.
Under the proposed system, Ogra would independently determine the prices of petrol, high-speed diesel, light diesel oil and kerosene oil each night, with revised rates taking effect from midnight.
If approved, the new mechanism would replace the current weekly price adjustment system, which itself followed earlier fortnightly and monthly pricing models.
The proposal would also remove the existing approval process involving the Petroleum Division, Finance Division and the Prime Minister, enabling Ogra to announce fuel prices without requiring government clearance.
The proposal is being reviewed by a committee formed by Prime Minister Shehbaz Sharif to examine reforms to the petroleum pricing system.
The committee has held four meetings so far, with the latest chaired by Petroleum Minister Ali Pervaiz Malik on July 13.
The meeting was attended by senior government officials, representatives of Ogra, Pakistan State Oil (PSO) and consultancy firm KPMG, which presented four pricing models—monthly, fortnightly, weekly and daily—along with the potential advantages and drawbacks of each option.