Pakistan is considering a potential policy shift that may improve price responsiveness, as fuel pricing review frequency could increase from fortnightly to weekly under a proposal prepared by the Petroleum Division (Pakistan), with prices currently calculated by Oil and Gas Regulatory Authority (OGRA).
The federal government is contemplating introducing a weekly petroleum pricing mechanism that could replace the existing 15-day revision system, aiming to enhance market responsiveness amid rising volatility in international oil markets and regional geopolitical uncertainties that may increase price fluctuation risks.
Official sources said a summary finalised by the Petroleum Division is expected to be presented before the upcoming meeting of the Economic Coordination Committee (ECC) for possible approval. The proposal suggests revising petrol and high-speed diesel prices every seven days instead of twice a month.
The proposed reform seeks to discourage speculative inventory practices and reduce the possibility of hoarding of petroleum, oil and lubricants (POL) products by dealers during price adjustment cycles. Authorities believe shorter pricing intervals may also protect market participants from significant inventory losses caused by sharp international price movements.
Pakistan is heavily dependent on imported petroleum products to meet domestic demand, with supply largely sourced from Gulf countries, including the United Arab Emirates, Saudi Arabia, and Kuwait.
Sources said annual imports of petroleum products are estimated at 18–19 million tonnes, while crude oil imports average about 137,000 barrels per day to supplement domestic refinery output, which is insufficient to meet national consumption requirements.
The UAE remains a major supplier of refined products, particularly petrol, through exports from ADNOC-linked refining facilities, with shipments arriving mainly via Fujairah and Jebel Ali ports.
Saudi Arabia supplies roughly one-third of Pakistan’s crude oil requirements, including discussions regarding alternative shipment arrangements through Red Sea terminals such as Yanbu.
Kuwait is a significant source of high-speed diesel under long-term procurement arrangements, primarily through the Mina Al Ahmadi refinery, supporting Pakistan’s transportation and industrial fuel needs.
Most Gulf oil shipments destined for Pakistan traverse the strategic Strait of Hormuz, a vital global energy corridor where security tensions can influence international crude and product prices.
Sources indicated that the weekly pricing mechanism could reduce the magnitude of sudden price shocks by limiting adjustment exposure to seven-day market movements instead of 15-day cumulative fluctuations.
If approved by the ECC, the policy shift would represent a significant structural change in Pakistan’s petroleum pricing framework and align domestic price review practices more closely with international market response models.
The proposal is currently under consideration, and final approval will depend on economic and policy assessments by the federal government.
