Pakistan is preparing to introduce weekly petroleum price revisions as global energy markets face severe disruption following tensions affecting the Strait of Hormuz. Authorities believe faster adjustments will help manage rising import costs and stabilize domestic fuel availability during a period of heightened uncertainty in international oil trade routes.
The proposed policy shift comes as officials report sharp increases in petroleum price differentials, with diesel costs rising by nearly Rs. 45–50 per liter and petrol by Rs. 25–26 during the first week alone. Economic managers warn that continued supply disruptions could push prices even higher if global shipping constraints persist.
Under the new mechanism, fuel prices would be adjusted every week instead of the current fortnightly system. Policymakers argue that quicker revisions will prevent financial losses from accumulating for oil marketing companies and refiners, whose margins have come under pressure due to escalating operational costs.
Insurance and freight expenses for oil shipments have surged dramatically amid regional instability. Insurance premiums reportedly climbed from about $30,000 per vessel to nearly $400,000, while freight charges increased beyond $4 million per shipment compared with approximately $900,000 before the crisis began.
To maintain uninterrupted supplies, the government is considering compensating oil companies for extraordinary costs related to insurance, freight, and import premiums. Officials caution that without financial relief, companies may reduce imports or declare force majeure, potentially triggering domestic fuel shortages and market instability.
Pakistan State Oil has already initiated precautionary tenders seeking fuel supplies outside traditional Gulf routes, including shipments through the Red Sea. Authorities confirm that existing reserves provide roughly four weeks of coverage, but the Economic Coordination Committee continues reviewing contingency measures to protect supply chains and maintain market liquidity.
Also read: Fuel Supply Stable: OGRA Addresses Nationwide Rumors
