Pakistan mulls daily Fuel Price Mechanism as petrol pump owners raise concerns

Under the proposed system, OGRA will become solely responsible for determining the prices of petroleum products each night

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-July 15th, 2026) The Federal government is considering introducing a new mechanism under which petroleum product prices would be revised on a daily basis instead of the current pricing schedule, according to media reports.

Under the proposed system, the Oil and Gas Regulatory Authority (OGRA) would become solely responsible for determining the prices of petroleum products each night, significantly reducing the government’s direct role in the pricing process.

A senior Petroleum Division official said OGRA would set the prices of Motor Spirit (petrol), High-Speed Diesel (HSD), Light Diesel Oil (LDO), and Kerosene Oil (KO) every night. The revised prices would take effect from midnight on a daily basis.

Meanwhile, the All Pakistan Petrol Pump Owners Association has expressed serious reservations over the proposed move, saying the introduction of a daily pricing mechanism would create further uncertainty for fuel retailers.

In a statement, the association said it firmly opposes the proposal, arguing that even the existing system of more frequent price revisions has already caused significant operational challenges for petrol pump owners.

<?php /*?> <?php */?>

It said frequent changes have complicated inventory management, financial planning, and overall business stability, and warned that daily revisions would further intensify these problems.

The association’s Vice Chairman, Nauman Ali Butt, said it was regrettable that key stakeholders, particularly petrol pump owners, had not been consulted before considering such an important policy change. He stressed that meaningful consultation with affected parties is essential for the successful implementation of any pricing policy.

The association urged the government to reconsider the proposal and formulate a practical and balanced pricing policy in consultation with petrol pump owners.

It also recommended improving the existing pricing system and adopting a monthly pricing mechanism to ensure greater business stability. The association warned that if its concerns are not addressed, it would be compelled to announce its future course of action.