Pakistan is considering a major overhaul of its petroleum pricing mechanism as growing geopolitical tensions in the Strait of Hormuz continue to create uncertainty in global oil markets. The government is reviewing a proposal to replace the current weekly fuel price revisions with a daily pricing system that would allow domestic fuel prices to respond more quickly to international market movements.
Under the proposed mechanism, the Oil and Gas Regulatory Authority (OGRA) would assume greater authority by independently calculating and announcing daily prices for petrol, high-speed diesel (HSD), light diesel oil (LDO), and kerosene each evening. If approved, the revised prices would become effective from 12:00 a.m. the following day.
The proposal was reviewed by the Petroleum Price Reform Committee, chaired by Federal Petroleum Minister Ali Pervaiz Malik. The committee is expected to submit its recommendations to Prime Minister Shehbaz Sharif, who will make the final decision on whether Pakistan adopts daily petroleum price adjustments.
The review comes as global oil markets remain volatile due to tensions surrounding the Strait of Hormuz, a strategic route that carries nearly one-fifth of the world’s oil supply. Any disruption in the region could significantly impact crude oil prices and increase fuel import costs for countries such as Pakistan.
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