The government has approved a new system to review petroleum prices on a weekly basis. It aims to help the oil industry manage rising premiums, insurance, and freight costs. The decision follows concerns from the Petroleum Division over possible supply pressures in the Gulf region.
Global oil markets have recently been volatile. This is mainly due to disruptions affecting shipments through the Strait of Hormuz which carries about 20% of the world’s oil supply. Pakistan relies heavily on imports from Gulf countries, making it vulnerable to supply delays and higher costs.
During the first eight months of the current fiscal year, Pakistan imported 3.6 million metric tons (70%) of petrol and 1 million metric tons (21%) of high-speed diesel.
Meanwhile, domestic consumption reached 5.2 million tons of petrol and 4.8 million tons of diesel.
Under the new system, weekly fuel prices will be based on a five-day average from Monday to Friday using Gulf Arab Platts data. Import premiums and other charges on cargoes handled by Pakistan State Oil will also be included.
The Oil and Gas Regulatory Authority will submit indicative prices every Friday for approval before the final announcement. Officials say the move will help align local fuel prices more quickly with global market changes.
