ISLAMABAD: Pakistan’s daily fuel pricing will replace periodic government-set rates after the federal cabinet authorised OGRA to calculate and publish petrol and diesel prices each day.
The Oil and Gas Regulatory Authority (OGRA) will calculate prices based on the average Platts benchmark over the previous 7 working days. International increases and decreases will automatically be reflected in domestic rates, Petroleum Minister Ali Pervaiz Malik said on Friday.
OGRA will publish each daily rate and the components of the retail price on its official website. The regulator will not require separate federal government approval whenever international prices change.
Prime Minister Shehbaz Sharif and the federal cabinet approved a mechanism to increase pricing transparency, Malik said during a joint press conference in Islamabad with Information and Broadcasting Minister Attaullah Tarar. The government did not announce an implementation date.
Read: Daily Fuel Prices: Pakistan Weighs Ogra-Led System
International diesel prices had risen from about USD 110 to USD 140 per barrel, while petrol increased from USD 89 to nearly USD 100, Malik said on July 17. He attributed the increases to renewed volatility in international energy markets.
The federal government has spent PKR 130 billion on petroleum subsidies, according to the minister. He said the subsidy programme would continue and rejected claims that the new mechanism imposed an additional levy on consumers.
The policy forms part of the government’s gradual deregulation of the petroleum sector. A prime ministerial committee will present further recommendations on energy pricing and security within 15 to 20 days, according to Radio Pakistan.
Shehbaz also directed the Federal Investigation Agency, the Intelligence Bureau and other enforcement bodies to act against fuel hoarding, overcharging and profiteering.
