Curated News Summary

Govt to fix fuel prices daily due to renewed hostilities in Persian Gulf: petroleum minister

Source: dawn.com Published Fri, 17 Jul 2026 22:46:28 +0500

Why This Matters

Key context: Petroleum Minister Ali Pervaiz Malik on Friday said that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US. The government had been announcing <a href="https://www.dawn.com/news/1978754">weekly revisions</a> to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also <a href="https://www.dawn.com/news/1988840">announced</a> targeted relief measures to provide subsidised fuel. Addressing a press conference alongside Information Minister Attaullah Tarar, Malik thanked the nation on behalf of the government, saying that people had “patiently tried to bear the burden of this war”. He noted that despite the efforts of Chief of Defence Forces (CDF) and Chief of the Army Staff Field Marshal Asim Munir and Prime Minister Shehbaz Sharif, the US-Iran war appeared to be escalating in the region. The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends. He added that Ogra would “not just publish the fuel rates on its website that are used to determine prices, but also publish the factors leading to the price that we see at each petrol pump”. Malik stated that although the decision would surely add to the burden on citizens, they would understand why it was necessary for the state. He said the decision was part of the government’s efforts to make the system more transparent, so that people could understand why increases in fuel prices were inevitable. He also noted that there had been “a lot of discussion” on the imposition of petroleum and climate levies by the government, and the prime minister’s promise that any price reductions would <a href="https://www.dawn.com/news/2008861">directly benefit</a> the nation. “The government is still determined to deliver on its promise,” he said. He said that the price of diesel had dropped from Rs520 to around Rs300, and similarly, a significant reduction of Rs70-80 in petrol prices was seen when it happened in international markets. The minister also noted that the petroleum levy and carbon support levy on petrol and diesel remained low. The minister said that the government was working towards greater transparency and reducing the burden of indirect taxation. According to him, the daily price announcements would be decided based on a seven-day weekly average of international market prices. He added that, as another step towards deregulation, it would be ensured that prices in the country were adjusted according to international market trends without requiring approval from him, the information minister “or anyone else”. Malik highlighted that, as part of efforts towards deregulation, Prime Minister Shehbaz had constituted a committee under the petroleum minister’s leadership, which had already held four meetings. “In the next 15-20 days, we will decide on the post-war energy pricing and energy security architecture, based on which future generations will assess this government,” he said. Malik also raised the question of why Pakistan continued to meet its energy requirements through imports, stating that a study had been undertaken to make informed decisions, with the help of internationally renowned consultants, on whether the government had the resources to maintain strategic petroleum reserves. Other questions, he noted, included how much money the government could commit to this initiative over the next few years, and how it could encourage large-scale traders in international markets and companies in “brotherly and neighbouring” countries to keep their reserves in Pakistan and supply other markets from here. The summary would be presented to the cabinet next week, he said. Malik also highlighted steps taken by the government to increase energy extraction. He noted that after the prime minister’s recent visit to Turkiye, <a href="https://www.dawn.com/news/1958871">Turkish Petroleum</a> would be arriving to extract oil and gas in the country in October after 20 years. “We will move towards betterment so that people will remember this government in good words,” the minister said. “If there are any burdens … we will get through these times using schemes like austerity measures.” Information Minister Attaullah Tarar also addressed the press conference, saying that the pricing formula for daily petrol rates would be formally published by Ogra. “We appreciate that it is not easy,” he said. “Increases in fuel prices affect people. The government understands this.” The minister stated that the increase in oil prices in international markets was linked to the worsening regional situation and that Pakistan’s efforts to resolve the situation had been “appreciated by the entire world”. During oil shortages at the peak of tensions, he noted that “many developed countries in the world saw people lining up for fuel and they couldn’t get it”. At the same time, he said, the prime minister had arranged additional oil reserves beforehand. “Many countries opted for rationing, but in Pakistan, there was no rationing or shortage,” Tarar said. “Whenever the petroleum division gave a briefing, it would announce that we had reserves for one and a half to two months.” He further said that when prices were soaring around the world, the federal government reduced its development budget to provide Rs129 billion worth of <a href="https://www.dawn.com/news/1988840">subsidies</a>, thus countering the price hikes. This, he said, was “a conscious decision” by the prime minister to ensure that the burden was not transferred to the people. He also addressed the “misconception” that levies had been hugely increased, saying, “The fact is that the levy is currently lower than pre-war levels, if not equal … There was a special effort to reduce it.” Tarar also commented that “we, as an economy and as a country, have to move towards electric bikes and electric vehicles. It is inevitable.” He termed this the best solution for reducing the country’s import bill and mitigating the impact of rising prices. Additionally, he challenged the misconception that oil marketing companies had made “huge profits”, pointing out that PM Shehbaz had directed investigative departments — including the Federal Investigation Agency (FIA) — and regulators that no one would be allowed to earn excess profits. He added that strict action had been taken “just yesterday” against a company found to be hoarding. Tarar highlighted the strict regulations governing oil companies, adding that Ogra, an independent regulator, had an “honest, upright officer” as its chairman, as well as a new IT-based system introduced on the premier’s recommendation. “Ogra is doing its work to ensure that there is no extra profitmaking, hoarding or artificial inflation,” he said. The information minister also encouraged experts and analysts to discuss the pricing formula with the government, noting that “often these debates are very healthy”. He prayed for the success of Pakistan’s negotiation efforts and a permanent end to the war, adding that “there should be no politics over this”. “Our priority is to give as much relief to the nation as we can,” he said. <h2><a id="petrol-pump-body-rejects-proposed-deregulation" href="#petrol-pump-body-rejects-proposed-deregulation" class="heading-permalink" aria-hidden="true" title="Permalink"></a>Petrol pump body rejects proposed deregulation</h2> The All Pakistan Petrol Pump Owners’ Association rejected the government’s proposed price deregulation policy, warning that it would consider protests and a strike against the decision next week if it was not withdrawn. In a video statement, the association’s Vice Chairman Noman Ali Butt said that the government should review its policy and not place the burden of its problems on petrol pump owners. “All stakeholders should be taken into confidence before fixing rates with oil marketing companies,” he said. He noted that about 15,000 petrol pump owners across the country were facing serious concerns, and said that the new policy would affect oil tankers, transportation and the pricing system. “The government should consult petrol pump owners instead of making unilateral decisions,” the vice chairman said. Speaking to Dawn, senior journalist Khurram Husain said the government’s decision to fix fuel prices daily was a “good step”. “It was needed to manage the extreme volatility in oil prices that we are seeing nowadays,” said the journalist, who covers the economy and business. A renewed <a href="https://www.dawn.com/news/2016140">escalation</a> in tensions between the United States and Iran, after an interim <a href="https://www.dawn.com/news/2008730">agreement</a> in June, has once again largely halted traffic through the Strait of Hormuz, the world’s most important shipping route for oil and gas, pushing up global energy prices. Tehran resumed its blockade of the strait and Washington <a href="https://www.dawn.com/news/2015623/irgc-warns-of-blocking-more-waterways-after-hormuz-as-us-renews-blockade-of-iranian-ports">again blockaded Iranian ports </a>from Wednesday, as last month’s truce descended into daily attacks and counterattacks. The diesel price has come down from a <a href="https://www.dawn.com/news/1987901">peak of Rs520.35</a> recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28. The petrol price had <a href="https://www.dawn.com/news/1987901">peaked at Rs458.41</a> on April 3 after beginning its <a href="https://www.dawn.com/news/1979399">upward trajectory</a> from Rs266 in the first week of March. Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators. This development from dawn.com highlights ongoing changes in the sector.

Petroleum Minister Ali Pervaiz Malik on Friday said that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US. The government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel. Addressing a press conference alongside Information Minister Attaullah Tarar, Malik thanked the nation on behalf of the government, saying that people had “patiently tried to bear the burden of this war”. He noted that despite the efforts of Chief of Defence Forces (CDF) and Chief of the Army Staff Field Marshal Asim Munir and Prime Minister Shehbaz Sharif, the US-Iran war appeared to be escalating in the region. The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends. He added that Ogra would “not just publish the fuel rates on its website that are used to determine prices, but also publish the factors leading to the price that we see at each petrol pump”. Malik stated that although the decision would surely add to the burden on citizens, they would understand why it was necessary for the state. He said the decision was part of the government’s efforts to make the system more transparent, so that people could understand why increases in fuel prices were inevitable. He also noted that there had been “a lot of discussion” on the imposition of petroleum and climate levies by the government, and the prime minister’s promise that any price reductions would directly benefit the nation. “The government is still determined to deliver on its promise,” he said. He said that the price of diesel had dropped from Rs520 to around Rs300, and similarly, a significant reduction of Rs70-80 in petrol prices was seen when it happened in international markets. The minister also noted that the petroleum levy and carbon support levy on petrol and diesel remained low. The minister said that the government was working towards greater transparency and reducing the burden of indirect taxation. According to him, the daily price announcements would be decided based on a seven-day weekly average of international market prices. He added that, as another step towards deregulation, it would be ensured that prices in the country were adjusted according to international market trends without requiring approval from him, the information minister “or anyone else”. Malik highlighted that, as part of efforts towards deregulation, Prime Minister Shehbaz had constituted a committee under the petroleum minister’s leadership, which had already held four meetings. “In the next 15-20 days, we will decide on the post-war energy pricing and energy security architecture, based on which future generations will assess this government,” he said. Malik also raised the question of why Pakistan continued to meet its energy requirements through imports, stating that a study had been undertaken to make informed decisions, with the help of internationally renowned consultants, on whether the government had the resources to maintain strategic petroleum reserves. Other questions, he noted, included how much money the government could commit to this initiative over the next few years, and how it could encourage large-scale traders in international markets and companies in “brotherly and neighbouring” countries to keep their reserves in Pakistan and supply other markets from here. The summary would be presented to the cabinet next week, he said. Malik also highlighted steps taken by the government to increase energy extraction. He noted that after the prime minister’s recent visit to Turkiye, Turkish Petroleum would be arriving to extract oil and gas in the country in October after 20 years. “We will move towards betterment so that people will remember this government in good words,” the minister said. “If there are any burdens … we will get through these times using schemes like austerity measures.” Information Minister Attaullah Tarar also addressed the press conference, saying that the pricing formula for daily petrol rates would be formally published by Ogra. “We appreciate that it is not easy,” he said. “Increases in fuel prices affect people. The government understands this.” The minister stated that the increase in oil prices in international markets was linked to the worsening regional situation and that Pakistan’s efforts to resolve the situation had been “appreciated by the entire world”. During oil shortages at the peak of tensions, he noted that “many developed countries in the world saw people lining up for fuel and they couldn’t get it”. At the same time, he said, the prime minister had arranged additional oil reserves beforehand. “Many countries opted for rationing, but in Pakistan, there was no rationing or shortage,” Tarar said. “Whenever the petroleum division gave a briefing, it would announce that we had reserves for one and a half to two months.” He further said that when prices were soaring around the world, the federal government reduced its development budget to provide Rs129 billion worth of subsidies, thus countering the price hikes. This, he said, was “a conscious decision” by the prime minister to ensure that the burden was not transferred to the people. He also addressed the “misconception” that levies had been hugely increased, saying, “The fact is that the levy is currently lower than pre-war levels, if not equal … There was a special effort to reduce it.” Tarar also commented that “we, as an economy and as a country, have to move towards electric bikes and electric vehicles. It is inevitable.” He termed this the best solution for reducing the country’s import bill and mitigating the impact of rising prices. Additionally, he challenged the misconception that oil marketing companies had made “huge profits”, pointing out that PM Shehbaz had directed investigative departments — including the Federal Investigation Agency (FIA) — and regulators that no one would be allowed to earn excess profits. He added that strict action had been taken “just yesterday” against a company found to be hoarding. Tarar highlighted the strict regulations governing oil companies, adding that Ogra, an independent regulator, had an “honest, upright officer” as its chairman, as well as a new IT-based system introduced on the premier’s recommendation. “Ogra is doing its work to ensure that there is no extra profitmaking, hoarding or artificial inflation,” he said. The information minister also encouraged experts and analysts to discuss the pricing formula with the government, noting that “often these debates are very healthy”. He prayed for the success of Pakistan’s negotiation efforts and a permanent end to the war, adding that “there should be no politics over this”. “Our priority is to give as much relief to the nation as we can,” he said. Petrol pump body rejects proposed deregulation The All Pakistan Petrol Pump Owners’ Association rejected the government’s proposed price deregulation policy, warning that it would consider protests and a strike against the decision next week if it was not withdrawn. In a video statement, the association’s Vice Chairman Noman Ali Butt said that the government should review its policy and not place the burden of its problems on petrol pump owners. “All stakeholders should be taken into confidence before fixing rates with oil marketing companies,” he said. He noted that about 15,000 petrol pump owners across the country were facing serious concerns, and said that the new policy would affect oil tankers, transportation and the pricing system. “The government should consult petrol pump owners instead of making unilateral decisions,” the vice chairman said. Speaking to Dawn, senior journalist Khurram Husain said the government’s decision to fix fuel prices daily was a “good step”. “It was needed to manage the extreme volatility in oil prices that we are seeing nowadays,” said the journalist, who covers the economy and business. A renewed escalation in tensions between the United States and Iran, after an interim agreement in June, has once again largely halted traffic through the Strait of Hormuz, the world’s most important shipping route for oil and gas, pushing up global energy prices. Tehran resumed its blockade of the strait and Washington again blockaded Iranian ports from Wednesday, as last month’s truce descended into daily attacks and counterattacks. The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28. The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March. Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

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