Pakistan Launches Daily Fuel Pricing to Align With Global Markets

The Government of Pakistan has implemented a new daily pricing mechanism for petrol, high-speed diesel, kerosene oil, and light diesel oil to align domestic costs with international market trends. Under this framework, the Oil and Gas Regulatory Authority (OGRA) now determines and publishes ex-depot prices every working day from Monday to Friday. These prices are based on actual import costs and the average international prices of the previous seven working days.

This shift moves Pakistan toward a market-driven system by removing the requirement for daily price revisions to be approved by the Prime Minister or Federal Cabinet. However, the federal government maintains control over customs duties, climate levies, and the Petroleum Development Levy. To prevent market manipulation, the government ordered a nationwide crackdown on hoarding and profiteering, authorizing the Federal Investigation Agency and Intelligence Bureau to cancel the licenses of violating oil marketing companies. Additionally, Pakistan State Oil is set to become the sole importer of high-speed diesel starting in 2027.

In the first revision under the new system, effective July 21, 2026, the price of high-speed diesel rose by Rs 5.71 per litre to Rs 360.06, while petrol prices dropped by Rs 0.35 per litre to Rs 315.80. This transition occurs amid global market instability, as Brent crude prices reached approximately $90 per barrel following the United States restarting its war against Iran.