Pakistan is exploring a shift in its petroleum pricing system, proposing a shorter weekly review cycle instead of the current fortnightly schedule to enhance responsiveness to international market changes and regional volatility.
The policy proposal, prepared by the Petroleum Division (Pakistan), aims to allow domestic petrol and diesel prices to adjust more quickly to global oil market movements.
Sources said the summary will be tabled before the Economic Coordination Committee (ECC) for possible approval, marking a potential change in Pakistan’s fuel pricing management strategy.
Currently, fuel prices are calculated and notified by the Oil and Gas Regulatory Authority (OGRA) based on international oil benchmarks, exchange rate variations, and domestic tax structures.
Under the proposed mechanism, petrol and high-speed diesel prices would be reviewed every seven days, replacing the existing 15-day pricing framework used for consumer fuel adjustments.
Officials believe the shorter pricing interval could reduce the financial impact of large cumulative price changes on consumers by distributing adjustments across smaller weekly movements.
The move is also intended to discourage speculative storage practices and prevent inventory hoarding of petroleum, oil and lubricants (POL) products by market dealers during expected price revisions.
Pakistan’s petroleum consumption relies heavily on imported supplies, particularly from Gulf countries, including United Arab Emirates, Saudi Arabia, and Kuwait.
A major portion of oil shipments destined for Pakistan passes through the Strait of Hormuz, making regional maritime security an important factor in energy supply stability.
Industry observers say the proposal, if approved, could align Pakistan’s fuel pricing structure more closely with global practices where energy prices are adjusted at shorter intervals.
The summary reflects ongoing policy deliberations and does not represent a final decision, as the federal government will take the ultimate call after reviewing economic implications.
