Four refineries ask govt to withdraw new petrol pricing formula
Pakistan's four major refineries have asked the government to withdraw its revised pricing formula for petrol. They say it causes a loss of Rs 49.02 per litre.
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- Four refineries sent a joint letter to the petroleum minister seeking withdrawal of the revised Motor Spirit formula.
- They say the policy costs them Rs 49.02 per litre.
- They want the pricing system from before October 31, 2026 restored.
Pakistan's four major oil refineries have objected to the government's new petroleum pricing mechanism and asked for its immediate withdrawal, 24 News reported on Tuesday.
The refineries are Attock Refinery Limited, Cnergyico PK Limited, National Refinery Limited and Pakistan Refinery Limited. They sent a joint letter to the petroleum minister calling for the revised formula for Motor Spirit, the product sold as petrol, to be taken back at once.
According to the refineries, the policy imposes a financial loss of Rs 49.02 per litre. They say it threatens their operational viability and a $6 billion plan to modernise the sector.
The refineries say the federal government changed the Motor Spirit pricing formula on October 30 without consulting them. The Express Tribune also reported that industry officials argue the policy was changed without prior consultation.
The government has said the change was meant to shield consumers from surging global fuel prices caused by the conflict between the United States and Iran.
The refineries have demanded that the pricing formula introduced on March 7, 2026 be restored. They urged the government to bring back the system that was in place before October 31, 2026. In their view, the new mechanism is harmful to investment and could delay ongoing refinery upgrade projects.
Nawa-i-Waqt's Karachi commerce report said the refineries, including Attock, National and Pakistan Refinery, expressed reservations about the new system for pricing petroleum products. The paper's headline also said dealers want an audit. ProPakistani described the dispute as a Rs 49 petrol levy differential. The reports do not say whether the government has responded to the letter.
Why it matters
The pricing mechanism determines what motorists and transport users pay for petrol, and the dispute is between the government and the refineries that supply it.
