Pakistan Shifts to Daily Petroleum Pricing Amid Global Crisis

The Government of Pakistan transitioned to a daily petroleum pricing system on July 18, 2026, to address volatile global crude oil prices and rising import premiums. This shift follows escalating tensions between the United States and Iran, which pushed petrol and diesel costs toward $100 and $140 per barrel respectively. In a phased deregulation strategy directed by Prime Minister Shehbaz Sharif, the Oil and Gas Regulatory Authority (Ogra) was tasked with replacing periodic pricing with a real-time, market-driven formula.

Immediate price hikes on July 18 saw petrol rise by Rs5.44 to Rs316.15 per litre, high-speed diesel increase by Rs31.05 to Rs354.35 per litre, and jet fuel rise by Rs40.35 to Rs291.55 per litre. To mitigate the impact on citizens, the government allocated Rs130 billion for public relief and maintained targeted subsidies for agriculture, public transport, and motorcyclists.

To support the transition, the government formed a special committee and directed Ogra to upgrade its digital infrastructure for timely notifications. While Information Minister Attaullah Tarar emphasized crackdowns on hoarding and a shift toward electric vehicles, the All Pakistan Dealers Association rejected the daily pricing model and threatened protests for the following week. Industry officials warned that the spike in jet fuel costs would likely increase airfares.