THE Institute of Cost and Management Accountants of Pakistan (ICMA) has released its latest Economic Signal report, cautioning that Pakistan’s move to daily petroleum price adjustments is amplifying short-term uncertainty amid global oil volatility.
Between August 1 and September 17, petrol prices surged by 16.42pc, rising from Rs336.03 to Rs391.22 per litre, while high-speed diesel climbed 7.41pc to Rs421.45 per litre. The report emphasises that daily repricing has accelerated the transmission of external shocks, leaving households and businesses with little time to absorb sudden costincreases.
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 than Pakistan’s daily mechanism, which has disrupted transport, production, and freight costs.
The report also highlights the fiscal dimension, noting that the Petroleum Levy stood at Rs80 per litre on September 17, accounting for more than 20pc 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 UAE 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.