Pakistan Implements Daily Fuel Price Revisions as Current Account Faces $139 Million Deficit in FY26
Pakistan will revise petroleum prices daily in response to rising global oil prices amid escalating tensions in the Middle East, particularly between the US and Iran. The decision was announced by Petroleum Minister Ali Pervaiz Malik and Information Minister Attaullah Tarar during a press conference. This shift aims to enhance the government’s ability to react swiftly to market fluctuations.
New Pricing Mechanism
The new pricing system will be managed by the Oil and Gas Regulatory Authority (OGRA), which will now set fuel prices daily. Malik stated that OGRA will not only publish the rates but also disclose the factors influencing these prices at petrol pumps. The daily adjustments will be based on the seven-day average of international market prices, making the pricing mechanism more transparent.
Previously, Pakistan revised fuel prices weekly after the onset of the US-Iran conflict in February. Before that, adjustments were made every two weeks. The government faced criticism for delays in passing on the benefits of lower international oil prices to consumers. Malik emphasized that the new approach would align local prices with international markets without requiring prior consultations.
Domestic Energy Production Plans
In addition to the pricing changes, Malik announced plans to enhance domestic energy production. Turkish Petroleum, Turkey’s national oil and gas company, is set to return to Pakistan in October for oil and gas exploration after a 20-year hiatus. This development follows Prime Minister Shehbaz Sharif’s recent visit to Turkey.
Information Minister Tarar linked the rise in international oil prices to the deteriorating regional situation and noted that Pakistan’s diplomatic efforts to address the crisis have been recognized globally.
Petrol Pump Owners’ Concerns
The All Pakistan Petrol Pump Owners’ Association has rejected the new fuel price deregulation policy. Vice Chairman Noman Ali Butt warned of potential protests and strikes if the government does not reconsider its decision. He urged the government to engage with petrol pump owners before implementing the new pricing structure.
Butt expressed concerns that the policy could adversely affect oil tankers, transportation, and the overall pricing system. He called for consultations with stakeholders to ensure a fair approach to fuel pricing.
Current Account Deficit
Pakistan’s economic situation remains challenging, with a current account deficit of $139 million reported for FY2025-26, reversing the surplus of $1.838 billion from the previous fiscal year. Data from the State Bank of Pakistan indicates that the deficit could worsen due to ongoing tensions in the Middle East.
In June, the current account deficit reached $649 million, compared to a surplus of $500 million in May. The economy continues to rely heavily on remittances, as exports have not kept pace with elevated import levels. The trade deficit exceeded $35.5 billion during FY26, with goods exports declining to $30.843 billion from $32.434 billion the previous year. However, services exports increased to $10.034 billion, contributing to marginal overall growth in exports.
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