ISLAMABAD: Petrol prices in Pakistan may decrease by Rs15 per litre under a revised government mechanism for setting petroleum prices, Petroleum Minister Ali Pervaiz Malik has said.
Speaking at a press conference in Islamabad alongside the information minister, Ali Pervaiz Malik said the government could provide consumers with relief of Rs15 per litre through the cooperation of local oil refineries.
He said the government had approached oil refineries and asked them to support efforts to ease the financial burden on the public during the current difficult situation.
The petroleum minister explained that petrol prices were expected to rise by Rs15 per litre on Friday. However, the increase was avoided after local refineries agreed to cooperate with the government.
He said the refineries had shared a financial burden of Rs15 billion with the government to prevent the price hike.
Ali Pervaiz Malik added that local refineries produce nearly 30 percent of Pakistan’s petrol and had earned considerable profits. Under the new arrangement, they would bear a monthly financial burden of Rs15 billion.
He further said a meeting with representatives of oil refineries would take place on Thursday to discuss the details of the arrangement.
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New Petroleum Pricing Formula
Meanwhile, the government has introduced changes to the petroleum price-setting mechanism amid rising tensions between Iran and the United States, according to official sources.
Following approval from the federal cabinet, the Petroleum Division has communicated the revised pricing formula to oil refineries.
Under the new mechanism, petrol’s import price will be calculated according to the actual cost of cargo imported by Pakistan State Oil (PSO).
If the actual import cost is not available, the premium and other additional expenses of the most recent cargo will be used to determine the price.
Sources said oil refineries would be allowed to set petrol prices for the next 30 days based on the rates applicable on March 7, 2026. The premium, additional expenses and customs duty would also remain at their March 7 levels.
The difference between the import price and the ex-refinery price will be deposited by refineries under the petroleum levy.
Sources further explained that any adjustment in the petroleum levy would be passed on directly to petrol consumers through a reduction in prices.
The Petroleum Division has also sent formal letters to all oil refineries, instructing them to share daily petrol sales figures with the department and the Oil and Gas Regulatory Authority (OGRA).
Refineries will also have to submit daily sales reports along with CPRs and payment challans. OGRA and the Petroleum Division will review the records to verify additional levy payments and related calculations.
Before the Iran war, Pakistan revised petroleum prices every two weeks. The government moved to a weekly revision system after the conflict began on February 28.
The pricing schedule was later changed to daily adjustments, which continues to remain in effect.