Panel finalises proposals to overhaul petroleum pricing framework

A government-appointed committee reviewing Pakistan’s petroleum pricing mechanism has outlined a package of reforms aimed at making fuel pricing more transparent, improving market oversight and strengthening the country’s energy security, with its final recommendations expected to be submitted to the prime minister after one remaining meeting.

At its fourth meeting held on Monday, the panel recommended that the Oil and Gas Regulatory Authority (OGRA) begin publishing daily Platts benchmark prices on its website, allowing the public to access the international pricing reference used in calculating domestic petroleum prices.

The committee also proposed that the recently established petroleum price stabilisation fund be governed by a transparent, rules-based mechanism, with clearly defined procedures for both the accumulation and utilisation of funds to ensure accountability and avoid discretionary interventions in fuel pricing.

Another key recommendation was the digitisation of Pakistan’s petroleum supply chain, a step members said would enhance operational efficiency, improve regulatory oversight and strengthen monitoring across the downstream oil sector.

The meeting, chaired by Federal Minister for Petroleum Ali Pervaiz Malik, also reviewed developments in global energy markets. The minister said the committee’s work had assumed greater importance following the renewed closure of the Strait of Hormuz, which has added fresh uncertainty to international oil supplies.

Malik also cited findings from a KPMG study, saying petrol prices in Pakistan are lower than those in Bangladesh, Sri Lanka and Türkiye, while remaining broadly in line with prices in India.

Separately, the minister informed the committee that the government has proposed amendments to the Refinery Policy to encourage higher domestic diesel production, a move intended to reduce reliance on imported fuel and improve Pakistan’s long-term energy security.

The petroleum minister directed that the committee convene one final meeting before forwarding its recommendations to the prime minister for consideration.

Besides senior officials from the Petroleum Division, the meeting was attended by Federal Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, OGRA Chairman Nabeel Awan, and representatives from KPMG, Pakistan State Oil (PSO), the Finance Division, and the Ministry of Law and Justice.