Refineries to surrender petrol premium; Rs14.71 per litre relief reported
The government has changed the petrol pricing mechanism so refineries hand over the gap between import and ex-refinery prices as petroleum levy. The Nation Business reported that consumers have begun receiving a relief of Rs14.71.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- Refineries must surrender the difference between import and ex-refinery prices as petroleum levy.
- The benefit is to be passed on through lower retail petrol prices.
- The Nation Business reported a relief of Rs14.71 for consumers.
- OGRA directed refineries to deposit adjustments exceeding Rs49.
The federal government has revised how petrol is priced so that refineries must surrender the difference between the import price and the ex-refinery price as petroleum levy, The Express Tribune reported. The resulting benefit is to be passed on to consumers through a matching cut in retail petrol prices.
The Nation Business reported that petrol consumers in Pakistan have started receiving a relief of Rs14.71 after the government ordered refineries to give up an extra war-time premium.
The Petroleum Division issued separate notifications to the Oil and Gas Regulatory Authority (OGRA) and to oil refineries. This followed the federal cabinet's approval of changes to the motor spirit pricing mechanism on October 30. The changes were made to deal with price movements amid the continued Iran-US war.
Under the new arrangement, the import price of petrol will be based on the actual import cost of the relevant PSO cargo. If the actual cost is not available for a particular day's pricing, the premium, incidentals and customs duty of the last available cargo may be used.
For the next 30 days, refineries will receive an ex-refinery price with premium, incidentals and customs duty fixed at the levels applicable on March 7, 2026. The differential is to be surrendered under the petroleum levy head of account C03901, and refineries have been told to deposit the amounts under OGRA price and petroleum levy notifications.
Refineries must also send daily reports of domestic petrol sales, with computerised payment receipts and challans, to the Petroleum Division and OGRA. Sources said the formula was meant to stop consumers bearing the full impact of higher premiums and freight charges claimed by refineries. OGRA directed refineries to deposit adjustments exceeding Rs49 under the revised mechanism.
Officials said the prices announced on October 30 under the new formula helped avert a major increase. Petroleum Minister Ali Pervaiz Malik said more than 12 to 13 million deserving people were being given subsidised petrol at pre-war prices. He said the government had moved from blanket subsidies to targeted help supported by technology, and had avoided subsidising fuel for those who could afford it.
The minister also said fuel pricing information was being made public to ensure transparency, and that consumers would not need to approach him or the prime minister for relief when international oil prices fell.
Why it matters
Petrol buyers across Pakistan are receiving a price relief as refineries return the extra premium, and the changed formula affects how retail petrol prices are set.
