Authorities have initiated measures to lower fuel costs by permitting oil refineries to set the ex-refinery price of Motor Spirit petrol at the March 7, 2026 rate for the coming 30 days, according to information from sources.
Refineries will refund any surplus earnings above that threshold to the administration, which intends to apply the funds toward lowering the petroleum levy.
How the Mechanism Works
Insiders reported that based on a Petroleum Division communication dated October 30, customs duty, incidental charges, and premiums within the ex-refinery petrol price will remain capped at March 7, 2026 rates for 30 days.
Pakistan State Oil actual import costs will determine the import price. Refineries are required to transfer the price difference into the petroleum levy account while providing daily payment receipts and petrol sales figures to the Petroleum Division and OGRA for auditing purposes.
According to insiders, this system will recover roughly Rs. 49 per litre from refineries. Topline Securities projects the monthly financial impact between Rs. 10 to 15 billion.
What This Means for You
Funds collected from refineries provide authorities the flexibility to cut the petroleum levy, thereby reducing pump prices for motorists. The extent of consumer relief relies on total collections and upcoming fortnightly pricing determinations by the administration.
This temporary framework spans 30 days, following which officials will evaluate whether to prolong the arrangement.
Additional information will be released upon availability.
