The Institute of Cost and Management Accountants of Pakistan (ICMA) has released its latest Economic Signal report, cautioning that the country’s move to daily petroleum price adjustments is amplifying short‑term uncertainty in the face of global oil volatility.
Between Aug. 1 and Sept. 17, petrol prices surged by 16.42%, rising from Rs. 336.03/liter to Rs. 391.22/liter, while high speed diesel climbed 7.41% to Rs. 421.45/liter. The report emphasizes that daily repricing has accelerated the transmission of external shocks, leaving households and businesses with little time to absorb sudden cost increases.
The ICMA study underscores that “daily transparency should not mean daily volatility,” urging policymakers to balance market responsiveness with predictability. Malaysia’s weekly pricing cycle, which combines market adjustments with targeted subsidies, is cited as a model offering greater stability compared to Pakistan’s daily mechanism that has disrupted transport, production, and freight costs. The report also highlights the fiscal dimension, noting that the Petroleum Development Levy stood at Rs. 80/liter on Sept. 17, accounting for more than 20% of petrol’s retail price, while frequent adjustments complicated budgeting, export pricing, and inventory management across industries.
International comparisons reveal that Gulf countries such as the U.A.E. and Qatar maintain monthly pricing windows; India absorbed shocks through excise duty cuts; and Thailand temporarily capped diesel prices. ICMA recommends that Pakistan adopt a weekly retail reset based on rolling averages of international prices, introduce a rules‑based shock corridor to phase exceptionally large increases, direct relief toward vulnerable sectors such as public transport and essential freight rather than broad price freezes, and strengthen fuel‑supply resilience through inventories, diversified sourcing, and emergency protocols.
The report concludes that Pakistan must combine market‑linked transparency with clearly defined adjustment frequency and targeted protection. Predictability and gradual pass‑through, it argues, are essential to safeguard households and businesses against global oil shocks while maintaining fiscal discipline.