Pakistan to daily fuel price reviews amid oil price surge

The Pakistani government has announced a major shift to a daily review and adjustment of domestic fuel prices, a move officials say is driven by extreme volatility in global oil markets linked to renewed military tensions in the Middle East. Petroleum Minister Ali Pervaiz Malik, speaking at a press conference on July 17 alongside Information Minister Attaullah Tarar, stated the decision was approved by Prime Minister Shehbaz Sharif and the federal cabinet. The responsibility for determining the daily prices will fall to the Oil and Gas Regulatory Authority (OGRA).

Minister Malik explained that the change is a necessary response to a sharp surge in international oil prices, which he attributed to escalating regional conflict. He noted that global diesel prices had risen from approximately $110 to $140 per barrel following recent hostilities, while petrol prices were also climbing. He acknowledged the decision would add a burden on consumers but argued it was essential for the state, aiming to create a more transparent system where price changes are directly linked to international market fluctuations.

The new mechanism is part of a broader phased strategy to deregulate the...