The government has decided to introduce greater transparency in the petroleum pricing mechanism by authorizing the Oil and Gas Regulatory Authority (OGRA) to determine prices of petroleum products on a daily basis in line with international market trends.

This was stated by Minister for Petroleum Ali Pervaiz Malik while addressing a joint news conference along with Minister for Information and Broadcasting Attaullah Tarar in Islamabad today.

The Minister for Petroleum said the decision has been taken by Prime Minister Shehbaz Sharif and the Federal Cabinet to ensure transparency in the pricing system without exposing the state to any financial risk.

He said OGRA will publish daily petroleum prices on its website based on international market rates. He added that besides the Platts benchmark prices, the regulator will also disclose all components that make up the final retail price at petrol pumps so that the public can clearly understand how petroleum prices are determined. He said the new pricing mechanism will enable the public to understand why price adjustments sometimes become unavoidable.

The Petroleum Minister said international diesel prices have witnessed a sharp increase in recent days, rising from around 110 dollars to 140 dollars according to the Platts benchmark. He said petrol prices have also increased from about 89 dollars to nearly 100 dollars, resulting in another surge in global energy prices.

Highlighting the government's measures to protect common people from the adverse impact of the rising petroleum prices globally, he said the federal government has spent 130 billion rupees on subsidies for petroleum products, adding that the subsidy programme is still continuing.

Ali Pervaiz Malik rejected the impression that the government has imposed any additional burden on the public through petroleum levies. He said the current petroleum levy and carbon support levy remain below the levels applicable before the conflict, adding that no additional burden beyond Pakistan's international commitments has been placed on the public.

The Petroleum Minister said the government is reducing its direct role in petroleum price-setting by transferring this responsibility to OGRA, ensuring a transparent system that balances the interests of consumers, the government and the oil industry.

He said daily petroleum prices will be determined on the basis of the average Platts price over seven working days. Under the new mechanism, increases and decreases in international prices will automatically be reflected in domestic prices without requiring government intervention.

Describing the move as another important step towards deregulation of the petroleum sector, Ali Pervaiz Malik said the Prime Minister has also constituted a high-level committee under his chairmanship to prepare long-term reforms.

He said the committee has already held four meetings and will present recommendations on energy pricing and Pakistan's future energy security framework within the next fifteen to twenty days.

The Minister for Petroleum said the government is working on establishing a strategic petroleum reserve. He said its feasibility is being assessed through internationally renowned consultants.

He said the government is also promoting commercial oil storage arrangements with leading global energy companies. He said efforts are underway to expand domestic oil and gas exploration, address circular debt, upgrade oil refineries, reform the gas sector, restructure oil marketing companies, and improve the country's overall energy governance.

Ali Pervaiz Malik said Turkish Petroleum will begin offshore oil and gas exploration in Pakistan in October after a gap of twenty years, while cooperation is also being expanded with Saudi Aramco, Kuwait Petroleum, Qatar Energy, and American and Chinese companies.

Ali Pervaiz Malik said the government's objective is to take decisions that will strengthen Pakistan's long-term energy security despite short-term challenges.

He warned that Prime Minister Shehbaz Sharif has directed the FIA, Intelligence Bureau and other law enforcement agencies to take strict action against anyone involved in profiteering in the oil sector.

He assured that the government will take every possible step to protect the interests of the people.

Speaking on the occasion, Attaullah Tarar said the recent increase in international fuel prices is directly linked to regional tensions.

He said Pakistan continues to play its role in efforts to reduce tensions. He said Prime Minister Shehbaz Sharif's initiatives for regional peace have been widely acknowledged by the international community.

Attaullah Tarar said Pakistan must gradually transition towards electric vehicles and electric motorcycles to reduce its dependence on imported fuel and protect the economy from global oil price volatility.