ISLAMABAD: Federal government has approved a plan to determine petroleum prices on a daily basis, with the Oil and Gas Regulatory Authority (OGRA) set to publish updated fuel prices each day in line with international market movements.
Petroleum Minister Ali Pervaiz Malik, speaking alongside Information Minister Attaullah Tarar on Friday, said the decision was approved by Prime Minister Shehbaz Sharif and the federal cabinet as part of broader reforms to deregulate the petroleum sector.
Malik said rising regional tensions have driven up global crude oil prices, with diesel prices increasing from $110 to $140 per barrel in recent weeks. Despite the increase, he said the government has spent Rs130 billion on targeted fuel subsidies and continues to shield consumers from the full impact of international price hikes.
Under the new mechanism, OGRA will determine and publish petroleum prices daily on its website based on global market trends. Malik said the government is also working to increase domestic oil and gas production, noting that Turkish Petroleum is expected to begin offshore exploration in Pakistan in October for the first time in two decades.
The petroleum minister said the government will continue efforts to modernize the energy sector, improve administrative efficiency and ensure competitively priced fuel supplies through refinery upgrades and increased local exploration.
Information Minister Attaullah Tarar said the recent rise in international oil prices is linked to regional geopolitical tensions. He said Pakistan successfully secured additional fuel reserves during the recent crisis, preventing domestic shortages.
Tarar stressed that the government will maintain strict oversight of the petroleum market despite moving toward deregulation. He said oil marketing companies will not be given a free hand, warning that authorities will take action against hoarding, profiteering and market manipulation to protect consumers.