The meeting brought together representatives of the Oil and Gas Regulatory Authority (OGRA), the Oil Companies Advisory Council (OCAC), the Oil Marketing Association of Pakistan (OMAP), refineries, oil marketing companies (OMCs) and senior Petroleum Division officials to discuss implementation of the new pricing mechanism.

According to a statement, the meeting focused on the shift from weekly to daily fuel price adjustments and sought industry feedback on operational challenges to ensure a smooth rollout.

The move was widely welcomed by industry representatives, who described it as a positive step towards deregulating Pakistan’s petroleum sector.

Malik said the reform had been introduced on the directive of Prime Minister Shehbaz Sharif and approved by the federal cabinet as part of the government’s commitment to a rules-based petroleum pricing regime.

Under the new mechanism, retail fuel prices will be determined through a transparent, formula-based system linked to market fundamentals, reducing political intervention and allowing quicker adjustments to global price movements.

The minister said the daily pricing regime marked a fundamental shift towards a competitive, market-driven economy by ending reliance on weekly price announcements and mandatory government approvals.

He said the new system would curb market manipulation, eliminate opportunities for windfall gains and ensure fairer prices for consumers.

Officials told the meeting that the reform formed a key part of the government’s phased deregulation strategy, gradually reducing state intervention and allowing market forces to determine fuel prices, similar to daily exchange rate movements.

Malik said the Petroleum Division, in consultation with OGRA and industry stakeholders, was finalising standard operating procedures (SOPs) for the transition.

He added that technical issues, including the Inland Freight Equalisation Margin (IFEM), refinery adjustments and true-up mechanisms, were being addressed through close coordination with stakeholders.

OGRA informed the meeting that it had aligned its internal systems for the new regime and was upgrading its data dissemination platform to publish daily petroleum prices.

Participants also reviewed operational issues related to supply chain logistics, inventory management and the availability of real-time data.

The government assured stakeholders of its support in addressing implementation challenges and said a dedicated committee had been established to oversee the transition and resolve issues through consultation.

Malik said OGRA, district administrations, oil marketing companies, dealers, OCAC and OMAP all had critical roles in ensuring the reform’s success. While acknowledging that major reforms often present implementation challenges, he reiterated the government’s commitment to protecting consumers while ensuring the long-term sustainability of the petroleum sector.

Representatives of OCAC, OMAP, refineries and OMCs also highlighted operational concerns regarding the new pricing mechanism. The minister assured them that all genuine issues would be addressed through continued consultation and directed the Petroleum Division and OGRA to hold follow-up meetings to refine the pricing formula, resolve outstanding technical matters and ensure the successful implementation of the daily petroleum pricing regime.

The consultations follow the government’s decision announced on Friday to transfer authority for determining petrol and diesel prices to OGRA, which will now revise fuel prices daily using a seven-day average benchmark to better reflect international market movements. The reform comes amid heightened volatility in global energy markets driven by tensions in the Middle East.