OGRA to set petroleum prices daily under new pricing mechanism

July 18, 2026 (MLN): The federal government has decided to shift petroleum pricing authority to the Oil and Gas Regulatory Authority (OGRA), allowing the regulator to set daily prices of petroleum products in accordance with international market movements.

Minister for Petroleum Ali Pervaiz Malik, flanked by Minister for Information and Broadcasting Attaullah Tarar, disclosed this at a joint press conference in Islamabad.

He said the move had been approved by Prime Minister Shehbaz Sharif and the federal cabinet with the aim of bringing transparency to the pricing system while shielding the state from financial exposure.

According to the minister, OGRA will now post daily petroleum prices on its website, benchmarked against international rates.

Beyond the Platts reference price, the regulator will also break down every component that goes into the final pump price, he said, so consumers can better understand the basis for price revisions and why adjustments are sometimes unavoidable.

Ali Pervaiz Malik noted that global diesel prices had climbed sharply of late, moving from around $110 to $140 per barrel on the Platts index, while petrol had risen from near $89 to almost $100 amid a broader spike in energy markets.

He said the government had absorbed much of this impact on consumers' behalf, having allocated Rs130bn toward petroleum subsidies so far, with the programme still in effect.

The minister pushed back against suggestions that the public was being burdened with fresh levies, maintaining that the existing petroleum levy and carbon support levy remain lower than pre-conflict levels and that no charges beyond Pakistan's international obligations had been imposed.

He described the pricing overhaul as part of a broader deregulation push, with the government stepping back from direct price-setting in favour of a rules-based system overseen by OGRA.

Under the new framework, daily prices will be calculated using the seven-working-day average of Platts rates, letting global price swings pass through to the domestic market automatically.

Ali Pervaiz Malik said Prime Minister Shehbaz Sharif has set up a high-level committee, which he chairs, to draft longer-term energy pricing reforms.

The committee has met four times so far and is expected to submit its recommendations, along with a broader energy security framework, within 15 to 20 days.

On other fronts, the minister said a feasibility study for a strategic petroleum reserve was underway with international consultants, alongside efforts to arrange commercial oil storage tie-ups with global energy firms.

He added that work continues on expanding domestic exploration, resolving circular debt, upgrading refineries, reforming the gas sector, restructuring oil marketing companies, and strengthening overall energy governance.

Turkish Petroleum is set to resume offshore exploration activity in Pakistan in October, marking its return after a two-decade gap, Ali Pervaiz Malik said, adding that engagement is also being widened with Saudi Aramco, Kuwait Petroleum, Qatar Energy, and companies from the US and China.

He said Prime Minister Sharif has instructed the FIA, Intelligence Bureau and other law enforcement agencies to crack down on profiteering within the oil sector, and reiterated that the government would take all necessary steps to safeguard public interest.

Separately, Attaullah Tarar linked the recent surge in global fuel prices to ongoing regional tensions, saying Pakistan continues to push for de-escalation and that the prime minister's regional peace efforts have drawn international recognition.

He said Pakistan needs to gradually shift toward electric vehicles and motorcycles to cut reliance on imported fuel and insulate the economy from oil price volatility.

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