By SKM
July 18, 2026
ISLAMABAD: The government and petroleum industry stakeholders here on Saturday expressed broad support for the transition to a daily petroleum pricing mechanism, with Federal Minister for Petroleum Ali Pervaiz Malik assuring that operational concerns would be addressed through continued consultations to ensure a smooth rollout of the reform.
Chairing a high-level meeting attended by representatives of the Oil and Gas Regulatory Authority (OGRA), the Oil Companies Advisory Council (OCAC), the Oil Marketing Association of Pakistan (OMAP), refineries, oil marketing companies (OMCs), and senior officials of the Petroleum Division, the minister said the new pricing regime marks a significant step towards deregulating Pakistan’s downstream petroleum sector.
The meeting reviewed the shift from the existing weekly pricing mechanism to a daily formula-based system, with stakeholders discussing implementation challenges, technical issues and measures needed to facilitate a seamless transition.
Ali Pervaiz Malik said the reform, undertaken on the directive of the Prime Minister and approved by the federal cabinet, is aimed at establishing a rules-based petroleum pricing regime driven by market fundamentals rather than administrative intervention.
“The implementation of the daily petroleum pricing regime represents a fundamental shift towards a market-driven competitive economy. By decoupling petroleum prices from the weekly announcement cycle and mandatory government approval, we are reducing the potential for market abuse and windfall gains,” the minister said.
Officials informed the meeting that the daily pricing mechanism is designed to enhance transparency, ensure fair pricing for consumers and reduce the influence of political considerations on fuel prices. The reform is part of the government’s phased deregulation strategy intended to gradually allow market forces to determine petroleum prices.
The minister said the Petroleum Division, in consultation with OGRA and industry stakeholders, is finalizing Standard Operating Procedures (SOPs) for the transition. Technical matters, including the Inland Freight Equalization Margin (IEFM), refinery adjustments and true-up mechanisms, are also being addressed.
OGRA told participants it was fully prepared to implement the new pricing regime and was upgrading its internal processes and data dissemination systems. The regulator also committed to publishing daily petroleum price data to improve transparency and public access.
The meeting also reviewed operational issues related to supply chain logistics, inventory management and the availability of real-time market data. The government assured industry representatives of its support in resolving implementation challenges and said a dedicated committee had been established to oversee the transition process.
Representatives of OCAC, OMAP, refineries and OMCs welcomed the move towards deregulation but highlighted several operational concerns regarding the implementation of the daily pricing mechanism. The minister assured participants that all genuine issues would be addressed through continuous engagement.
OCAC and its member companies appreciated the Ministry of Petroleum and OGRA for advancing a deregulation initiative that has been under discussion for nearly two decades. They pledged their full support for the successful implementation of the reforms.
Participants said deregulation is expected to promote a more competitive, transparent and efficient fuel market by encouraging fair competition and improving operational efficiency. They expressed confidence that, if effectively implemented, the new framework would support the long-term growth and modernization of Pakistan’s downstream petroleum sector while protecting consumer interests.
The minister directed the Petroleum Division and OGRA to continue consultations with industry stakeholders to refine the pricing formula, address remaining technical issues and ensure the successful rollout of the daily petroleum pricing regime. Ends
