The government has transferred the authority to determine petroleum prices to the Oil and Gas Regulatory Authority (OGRA), with the regulator set to decide fuel prices on a daily basis under a new pricing mechanism, Petroleum Minister Ali Pervaiz Malik announced on Friday.

Addressing a joint press conference with Information Minister Attaullah Tarar, Malik said the move was aimed at bringing greater transparency to the fuel pricing system amid renewed volatility in international energy markets.

He said OGRA would now determine petrol and diesel prices on a daily basis and publish the updated prices on its website.

According to him, the seven-day average price would serve as the benchmark for determining daily fuel prices, which would also bring greater transparency to the pricing mechanism.

The minister said the regional situation remained “alarming”, adding that fresh tensions in the Middle East had once again shaken global oil markets and raised concerns over the stability of energy supplies.

He said international diesel prices had surged sharply from $110 to $140 per barrel, while energy prices had started rising across global markets following the renewed hostilities in the region.

Malik said Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir had made sustained efforts to help secure a lasting ceasefire, which he said was important for regional peace and economic stability.

The petroleum minister acknowledged the hardships faced by the public due to higher fuel prices and thanked people for showing patience during a difficult period.

He said the prime minister had tried to cushion the impact of rising energy costs through a targeted subsidy programme, which remained in place, but acknowledged that people were still facing financial challenges despite the relief measures.

Malik said the government was committed to making the petroleum pricing mechanism more transparent through the new system under which OGRA would determine prices on a daily basis.

Pakistan had earlier shifted from fortnightly to weekly petroleum price reviews during previous global oil price shocks following the Iran-US conflict to prevent shortages of petrol and diesel.

The latest move to daily price determination comes as the government seeks to respond more quickly to fluctuations in international oil markets.

Information Minister Attaullah Tarar said Pakistan had actively worked to help ease tensions between the United States and Iran, adding that the regional crisis had pushed up international petroleum prices.

He said the government had successfully ensured uninterrupted fuel supplies during the period of heightened tensions and that no shortages of petroleum products had occurred across the country.

Tarar said the government had provided Rs130 billion in subsidies to protect consumers from the full impact of rising global oil prices.

He added that petroleum prices would now be determined on a daily basis, saying the new policy would improve transparency and allow quicker adjustments in line with international market movements.

The information minister also said the government had reduced the petroleum levy and stressed the need to promote electric vehicles and motorcycles to reduce dependence on imported fossil fuels.

Warning against profiteering, Tarar said no one would be allowed to hoard petroleum products or exploit the crisis for financial gain.

He said oil marketing companies were being closely monitored to ensure adequate supplies and prevent market manipulation.

Pakistan had earlier shifted from fortnightly to weekly petroleum price reviews during previous global oil price shocks following the Iran-US conflict to prevent petrol and diesel shortages.

The latest move to daily price determination comes as the government seeks to respond more quickly to fluctuations in international oil markets.