Pakistan shifts to daily fuel price adjustments to curb market abuse

Pakistan has transitioned to daily fuel price adjustments, a move aimed at curbing market abuse and ensuring fair pricing for consumers, according to Petroleum Minister Ali Pervaiz Malik.

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the introduction of daily fuel price adjustments would help curb market abuse, eliminate opportunities for windfall gains and ensure greater transparency and fair pricing for consumers.

Speaking at a meeting with petroleum sector stakeholders, Malik stated that the reform promotes transparency and competition. The new mechanism replaces weekly price setting with a daily, formula-based system driven by market fundamentals. This aims to reduce political interference and shield consumers from abrupt price changes.

The initiative, directed by Prime Minister Shehbaz Sharif and approved by the federal cabinet, is part of the government's commitment to a rules-based petroleum pricing regime. Officials highlighted that the daily pricing mechanism is a key component of a phased deregulation strategy to lessen state intervention and allow market forces to dictate fuel prices, similar to exchange rate movements.

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the reform would promote transparency, strengthen competition and ensure fair, market-based prices for consumers.

The petroleum industry has broadly welcomed the change, viewing it as a positive step toward deregulating the sector. The Oil and Gas Regulatory Authority (Ogra) and industry stakeholders are finalizing standard operating procedures to ensure a smooth transition, addressing technical aspects like the Inland Freight Equalisation Margin and refinery adjustments.

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the daily pricing regime represented a fundamental shift towards a competitive, market-driven economy by ending dependence on the weekly price announcement cycle and mandatory government approval.