The federal government has approved a new daily pricing mechanism for petroleum products, allowing the Oil and Gas Regulatory Authority (OGRA) to revise fuel prices on a daily basis in line with international market movements. The revised framework takes immediate effect and is aimed at reducing the impact of global price fluctuations on domestic consumers.

Under the new mechanism, the Free on Board (FOB) price for Motor Spirit (MS) and High-Speed Diesel (HSD) will be calculated using a seven-working-day rolling average of Platts Arab Gulf benchmark prices. OGRA will publish updated ex-depot prices on its official website every working day, while prices will remain unchanged on Saturdays and Sundays.

For imported fuel, the pricing formula will incorporate the weighted average of actual import premiums, incidentals and customs duties on Pakistan State Oil (PSO) cargoes. Where no imports occur during the relevant period, calendar year-to-date averages or applicable long-term supply contract premiums will be used to ensure pricing continuity.

The framework also empowers OGRA to announce daily petroleum prices without requiring prior approval from the federal government or the Prime Minister, while maintaining petroleum levy limits set by the federal cabinet. The regulator has also been directed to publish the daily Platts benchmark prices to enhance transparency in the pricing process.

In addition, HSD imports will remain restricted to Pakistan State Oil (PSO) during FY2027, while Motor Spirit imports will be allocated among oil marketing companies based on market share through OGRA's Product Requirement Mechanism. The revised system also extends daily pricing to Superior Kerosene Oil (SKO) and Light Diesel Oil (LDO), with other pricing parameters remaining unchanged under existing regulations.