Pakistan is preparing major changes to its Fuel pricing system as the government reviews how petrol and diesel prices are determined. The move comes amid uncertainty in global oil markets and rising concerns over energy supplies following tensions around the Strait of Hormuz.
The Ministry of Energy has launched a high-level review of the country’s petroleum pricing framework. Officials are considering several reforms aimed at protecting consumers from sudden price shocks while improving transparency and strengthening Pakistan’s long-term energy security.
One of the key proposals is the activation of a permanent, rules-based Petroleum Price Stabilization Fund. The fund would help reduce the impact of sharp increases or sudden drops in international oil prices. If introduced, it could make Fuel prices more stable for consumers during periods of global market volatility.
Authorities believe the fund would provide a more predictable pricing system instead of frequent fluctuations caused by changes in international crude oil markets. The proposal is currently under review as part of a broader package of reforms.
The government is also considering making petroleum pricing more transparent. Under the proposed plan, the Oil and Gas Regulatory Authority (OGRA) would publish petroleum pricing data on a daily basis. Officials say this step would allow the public to better understand how local Fuel prices are calculated and improve confidence in the pricing process.
Another major proposal focuses on the digitization of Pakistan’s petroleum supply chain. The Ministry of Energy plans to introduce a digital monitoring system covering fuel imports, storage facilities, transportation, and retail sales. The system would provide real-time monitoring to improve efficiency and reduce irregularities across the sector.
In addition, the government wants to reduce Pakistan’s dependence on imported diesel. Officials are reviewing refinery policies to increase domestic refining capacity and boost local diesel production. The objective is to strengthen the country’s energy sector and reduce risks linked to international supply disruptions.
The Ministry of Energy is also preparing recommendations on strategic fuel reserves and long-term energy planning. These measures are intended to improve supply stability and ensure the country is better prepared for future global energy crises.
Petroleum Minister Ali Pervaiz Malik recently said the government is working to make Pakistan’s fuel pricing system more transparent and resilient. He confirmed that the review committee has recommended publishing daily Platts pricing data, implementing the Petroleum Price Stabilization Fund under a rules-based framework, and fully digitizing the oil supply chain.
The minister also noted that Pakistan’s petrol prices remain lower than those in Bangladesh, Sri Lanka, and Türkiye. He added that the committee will soon submit its recommendations to Prime Minister Shehbaz Sharif for final consideration.
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If approved, the proposed reforms could represent one of the biggest changes to Pakistan’s Fuel pricing mechanism in recent years. The government believes the new framework will help improve transparency, stabilize prices, strengthen energy security, and make the country less vulnerable to global oil market disruptions.
