ISLAMABAD: Federal government has decided to move to a daily fuel pricing mechanism, with the Oil and Gas Regulatory Authority (OGRA) set to determine petroleum prices on a daily basis, Petroleum Minister Ali Pervaiz Malik said Friday.
Speaking at a joint news conference with Information Minister Attaullah Tarar, Malik said the decision was approved by Prime Minister Shehbaz Sharif and the federal cabinet in response to volatility in global oil markets.
The minister said renewed regional tensions have pushed up international crude oil prices, leading to higher energy costs worldwide.
He added that the government had previously utilized Rs130 billion in fiscal resources to cushion consumers from the impact of rising fuel prices.
Malik said the shift to daily price adjustments is intended to better reflect changes in international oil markets and ensure a more responsive pricing mechanism for petroleum products in Pakistan.
The petroleum minister said global diesel prices had surged from $110 to $140 per barrel amid regional tensions, while energy prices were once again rising worldwide.
He said the federal government had spent Rs130 billion to subsidize petroleum products and that the subsidy program remains in place to shield consumers from market volatility.
Malik said OGRA will publish petroleum prices on its website every day under the new pricing mechanism.
He added that the government is establishing a high-level committee, under his leadership, to oversee deregulation of the sector and is also working to increase domestic oil and gas exploration, including offshore drilling in partnership with Turkish Petroleum, which is expected to deploy an exploration vessel to Pakistan in October after a two-decade gap.
The minister said the government is also working with the International Monetary Fund (IMF) on addressing the country’s circular debt and plans to upgrade local refineries to improve the use of crude oil and supply petroleum products at more competitive prices.
Information Minister Attaullah Tarar said rising oil prices were linked to regional geopolitical tensions and noted that Pakistan has been working diplomatically to help ease the crisis.
He added that the government secured additional fuel reserves during the peak of the tensions to help maintain domestic supplies and minimize disruptions.
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Tarar stressed that no company or dealer will be allowed to stockpile petroleum products to create artificial shortages or exploit consumers, reaffirming the government’s commitment to ensuring a stable fuel supply and protecting the public from market abuse.
