Oil and Gas Regulatory Authority

The All Pakistan Petroleum Pump Owners Association deferred a nationwide strike after negotiations with Petroleum Minister Ali Pervaiz Malik. The government assured stakeholders their grievances would be addressed within two weeks and cited efforts to mitigate rising fuel prices through subsidies and financial measures.

Petrol pump owners in Pakistan announced a nationwide strike after failed negotiations with the government over daily fuel pricing. The All Pakistan Petrol Pumps Owners Association (APPPOA) demanded monthly pricing and increased dealer commissions, citing financial challenges and a flawed pricing mechanism favoring oil companies.

The government increased petrol prices by Rs5.44 and diesel by Rs31.05 per litre for three days starting July 18, citing higher import premiums and global prices due to regional tensions. The Petroleum Minister announced daily fuel pricing adjustments effective immediately, replacing weekly revisions, with the Oil and Gas Regulatory Authority responsible for setting prices based on international market trends.

Power companies requested a Rs1.20 per unit fuel cost adjustment for August, citing increased expenses from imported fuels like Regasified Liquefied Natural Gas (RLNG) and furnace oil. The National Electric Power Regulatory Authority (Nepra) will hold a public hearing to review the request, which could add Rs15.7 billion to consumer bills if approved.

The LPG Importers Association of Pakistan warns of an imminent nationwide LPG shortage due to unsustainable pricing, urging the government to revise the pricing framework. The association claims the current price set by Ogra fails to cover import costs, leading to operational losses and potential shutdowns of import terminals. Despite recent price reductions by Ogra, retailers report no market relief, with LPG prices remaining high at Rs480-Rs550 per kg.

The Pakistani government missed its July 1, 2026, deadline for notifying a biannual gas tariff under an IMF $7bn Extended Fund Facility (EFF) due to legal disputes over the acting chairman of the Oil and Gas Regulatory Authority (Ogra) and unresolved unaccounted-for-gas (UFG) reduction targets. The delay breaches a structural benchmark required for IMF program compliance, despite Ogra completing revenue requirement calculations.

Ogra announced a 15pc increase in Regasified Liquefied Natural Gas (RLNG) prices for June due to supply disruptions from the US-Iran war and costly spot market purchases. The price hike raised fuel costs for power generation to Rs31 per unit in May, up from Rs13.72 in April, with Sui Southern Gas Company (SSGCL) and Sui Northern Gas Pipelines (SNGPL) reporting higher distribution and transmission losses.

The Federal Constitutional Court (FCC) ordered a fresh test of a seized chemical to determine if it is light aliphatic hydrocarbon (LAH) or smuggled Iranian petrol. The chemical was seized in 2023, and the court expressed concerns about risks from keeping fuel-laden tankers impounded for nearly three years. The FCC also indicated the goods could be released if the test confirms it is LAH.

The Oil and Gas Regulatory Authority (Ogra) faces disarray after a member resigned amid a Federal Investigation Agency (FIA) probe into price differential claims involving Rs14bn in questionable payments. The government is seeking legal cover to appoint civil servants to lead Ogra, despite its statutory autonomy, and has initiated amendments to the Ogra law to formalize this process.