Pakistan’s refineries have objected to a new petroleum pricing mechanism, warning that the revised formula could cause losses of up to Rs49 per litre and weaken investment in the local refining sector.
In a joint letter to the petroleum minister, four refineries, including Attock Refinery, National Refinery and Pakistan Refinery, voiced reservations about the revised pricing system for motor spirit, or petrol. The companies demanded its immediate withdrawal and the restoration of the formula that applied before October 31, 2026. They also urged the government to bring back the pricing formula introduced on March 7, 2026.
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Refineries say government acted without consultation
According to the letter, the government introduced the new mechanism without consulting the refineries. The companies said the change could deepen their financial difficulties and harm investment in the refining sector. They warned that it could also disrupt refinery upgrade projects, delay their completion and disturb local petrol production.
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The refineries said the revised system conflicted with existing agreements and government policy. They also raised concern that the premium on local petroleum prices had been frozen even as international market costs rose. The letter further stated that petroleum levy was now being collected directly from refineries.
Refineries seek urgent meeting with Petroleum Division
The refineries requested an immediate meeting with the Petroleum Division to discuss the matter. They also asked the government to direct OGRA to take corrective measures in the pricing mechanism.
