Pakistan Shifts to Daily Fuel Pricing Amid Global Volatility

The Government of Pakistan transitioned its petroleum pricing model from periodic reviews to a daily notification system starting July 17, 2026. Petroleum Minister Ali Pervaiz Malik announced that the Oil and Gas Regulatory Authority (Ogra) will now fix prices daily to reflect international market trends and prevent speculative hoarding, citing worsening tensions between the United States and Iran and potential disruptions in the Strait of Hormuz.

On July 18, the government implemented significant price hikes: petrol rose by Rs5.44 to Rs316.15 per litre, high-speed diesel increased by Rs31.05 to Rs354.35 per litre, and commercial jet fuel jumped by Rs40.35 to Rs291.55 per litre. Industry officials warn these jet fuel increases will likely raise domestic and international airfares. To mitigate the impact, Prime Minister Shehbaz Sharif allocated Rs130 billion for public relief, while maintaining targeted subsidies for agriculture, public transport, and motorcyclists.

This shift is part of a phased deregulation strategy directed by Shehbaz Sharif to reduce government intervention. Ogra is currently upgrading its digital infrastructure to support the new system, and a special committee has been formed to resolve supply chain and inventory challenges. However, the All Pakistan Dealers Association rejected the daily pricing decision and is considering protests for the following week. Additionally, Information Minister Attaullah Tarar stated the government is recovering excess gains from oil marketing companies to prevent profiteering.