As Pakistan announces its daily fuel pricing, the price of petrol has increased by Rs5.44, while diesel has increased by Rs31.50.

In the current fuel price revision, Pakistan has increased the costs of petrol and high-speed diesel. Petrol prices have been hiked by Rs5.44 per litre while diesel prices have seen a far higher increase of Rs31.50 per litre.

The steep jump comes against the backdrop of surging worldwide energy prices with the administration also planning a substantial revamp of the country’s petroleum pricing regime.

The new fuel prices are effective immediately and are in response to increasing pressure from global oil markets where energy prices have increased in recent weeks as regional tensions have built up.

OGRA to release fuel prices on daily basis under new cabinet decision

The decision comes as the federal cabinet authorised a new system under which the Oil and Gas Regulatory Authority (OGRA) would determine petroleum prices on a daily basis instead of the existing periodic pricing method.

Federal Minister for Petroleum Ali Pervaiz Malik announced the decision during a joint press conference with Federal Minister for Information Atta Tarar. Malik said the Prime Minister Shehbaz Sharif and the federal cabinet have decided that OGRA will now determine the prices of petroleum products on a daily basis as per the developments in foreign markets.

Under the new approach, the regulator would determine revised fuel prices on a daily basis and publish them on its official website, enabling domestic prices to more closely reflect changes in world oil markets.

The minister for petroleum indicated that the government had deliberately reduced its participation in establishing fuel prices and that OGRA had assumed increasing responsibility for pricing in line with existing international market circumstances.

“We are once again witnessing rising tensions in the region that are putting a lot of upward pressure on international energy markets,” he said.

But Malik said international prices of diesel had soared from $110 a barrel to $140 a barrel, demonstrating the extent of the growth and the steep increase in global energy costs.

He also thanked the public for their patience during the current economic troubles stating residents have proved to be resilient during a tough time.

OGRA will keep an eye on international market movements, calculate petroleum product prices on a daily basis and inform the public of the revised rates on its website, in one of the biggest changes to Pakistan’s fuel pricing system in recent years, with the new policy now approved by the cabinet.