Govt weighs daily fuel price reviews, OGRA asked to publish Platts data online every day

The federal government is considering shifting petroleum price reviews from the current weekly cycle to a daily basis after the renewed closure of the Strait of Hormuz increased uncertainty in global oil markets, according to a news report. 

The proposal was discussed at the fourth meeting of the prime minister’s committee on petroleum pricing, chaired by Federal Minister for Petroleum Ali Pervaiz Malik. 

No final decision has yet been taken on a revised pricing mechanism.

The committee also directed the Oil and Gas Regulatory Authority (Ogra) to publish daily Platts pricing data on its website so the public can access the benchmark used in Pakistan’s petroleum price calculations.

KPMG presented an assessment of daily and twice-weekly price reviews, including their advantages and risks. The firm also warned of further price shocks if disruption in the Strait of Hormuz persists.

Pakistan previously moved from fortnightly to weekly price reviews during earlier oil market disruptions linked to the Iran-US conflict. India revises retail petrol and diesel prices daily.

The committee also reviewed the proposed petroleum price stabilisation fund. Malik said its funding and disbursement mechanism should be clearly defined so relief can be passed on to consumers without political or discretionary intervention.

Members agreed that the fund should operate through a transparent and rule-based framework. However, the source of financing for the fund has yet to be finalised.

The government recently raised petrol and diesel prices by nearly Rs14 per litre after fresh US strikes on Iran and renewed disruption around the Strait of Hormuz.

Crude oil had recently fallen below $80 per barrel after crossing $100 before the Iran-US peace agreement mediated by Islamabad. Analysts have warned that prices could exceed $150 per barrel if the Strait of Hormuz remains closed.

Malik claimed petrol prices in Pakistan were lower than in Bangladesh, Sri Lanka and Türkiye and broadly comparable with India.

He also said the government had proposed amendments to the Refinery Policy to increase domestic diesel production and reduce dependence on imported fuel.

The committee stressed the need to digitise the oil supply chain. Malik directed that the next meeting would be the committee’s final session, after which recommendations would be submitted to the prime minister.

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, the KPMG team, committee members and officials from the Finance Division, OGRA, Pakistan State Oil, Ministry of Law and Justice and Petroleum Division.