Govt decides OGRA will set petroleum prices on a daily basis

ISLAMABAD -- Federal Minister for Petroleum Ali Pervaiz Malik announced that Prime Minister Shehbaz Sharif and the federal cabinet have decided to introduce a daily pricing mechanism for petroleum products, under which the Oil and Gas Regulatory Authority (OGRA) will determine prices every day in line with international market trends.

Addressing a joint press conference with Federal Minister for Information Atta Tarar, Malik said the recent escalation of tensions in the region had once again pushed up global crude oil prices, leading to renewed increases in energy costs worldwide.

He said the region appeared to be heading towards another conflict, adding that international diesel prices had surged sharply in recent days, rising from around $110 per barrel to $140 per barrel.

The minister thanked the public for showing patience despite the economic hardship, saying the government had continued its targeted subsidy programme to cushion the impact of rising fuel prices. He maintained that no additional burden had been placed on consumers and that subsidies on petroleum products remained in effect.

Malik said the government was moving towards the deregulation of the petroleum sector. Under the new mechanism, OGRA will determine petroleum prices on a daily basis, taking into account fluctuations in the international market, and will publish the revised prices on its official website each day.

He added that the current rates of the petroleum levy and carbon support levy on petrol and diesel had been kept lower than previous levels.

The petroleum minister said the federal government had utilised Rs130 billion to provide relief to consumers amid rising global energy prices. He warned that strict action would be taken against profiteering and hoarding in the oil sector.

Speaking on the occasion, Information Minister Atta Tarar said the rise in global oil prices was directly linked to heightened regional tensions. He said the government had secured oil cargoes from multiple countries to meet Pakistan's energy requirements, ensuring that the country did not face fuel shortages.

Tarar also warned that oil marketing companies would not be given a free hand, stressing that regulatory oversight was currently stricter than ever before. He said the government would not tolerate hoarding or market manipulation by any stakeholder.