Pakistan has officially replaced its fortnightly fuel pricing system with a daily pricing mechanism, allowing petrol and diesel prices to be revised every working day in line with international oil markets.

The new system took effect on Monday after federal government approval. Under the revised framework, the Oil and Gas Regulatory Authority (OGRA) will publish updated ex-depot prices for petrol and high-speed diesel on its website each working day.

Fuel prices will now be calculated using the rolling seven-day average of international benchmark prices. No price revisions will be announced on Saturdays or Sundays, with Friday’s rates remaining in effect over the weekend.

Under the new policy, OGRA will determine ex-depot prices without requiring prior approval from the federal government. Petrol prices will be based on import costs and applicable import premiums. If no imports take place during a given period, the annual average import premium will be used instead. High-speed diesel prices will also be linked to import costs and the seven-day average of global prices.

The government said the Petroleum Development Levy (PDL) will remain within the maximum limit approved by the federal cabinet, while any changes to the levy will continue to require approval from the Ministry of Finance.

To improve transparency, OGRA will also begin publishing daily international benchmark prices for petroleum products alongside domestic ex-depot rates.

The policy introduces changes to fuel imports as well. Beginning in 2027, Pakistan State Oil (PSO) will become the sole importer of high-speed diesel, while oil marketing companies (OMCs) will continue importing petrol according to their market shares.

The government has warned that OMCs violating import regulations could face a ban on fuel imports for up to nine months. The daily pricing mechanism will also apply to kerosene oil and light diesel oil, with OGRA directed to implement the framework immediately.