Petroleum Minister Ali Pervaiz Malik said on Monday that petrol prices could fall by Rs15 per litre under a new pricing formula, which will be finalised with oil refineries.
Addressing a press conference alongside Information Minister Attaullah Tarar, Malik said the government could deliver the relief with the cooperation of refineries. A meeting with refinery representatives is scheduled for tomorrow to discuss all related matters.
Malik said refineries had earned more in the past three months than in several previous years, and that before October 31, Pakistan was paying a premium of $10 to $20 on imports. Local refineries account for 30 percent of petrol production and, together with the government, have absorbed a financial burden of Rs15 billion.
A Rs15 per litre increase that was due on Friday was averted with their support, he said. The minister also termed the Rs600 price of LPG unjustified and said the government would take action against it.
Tarar said the increase was withheld on the strict instructions of Prime Minister Shehbaz Sharif, adding that further rises had been stopped as part of the strategy of the federal government and that the subsidy would continue.
More than 10 million people have benefited from the fuel subsidy scheme, which has provided relief worth Rs27 billion so far, he said. He added that peace efforts in the region are ongoing.
Both ministers said rising global energy prices and the regional situation have pushed up transport costs and affected the economy, and that the priority of the government is to pass on the least possible burden to the public.
Last week, amid the Iran-US war, the federal government approved a revised petrol pricing mechanism, directing refineries to pass on the financial benefits to consumers through equivalent cuts in retail prices.
According to a Ministry of Energy notification issued on October 30, 2026, the Federal Cabinet approved an arrangement under which petrol import prices will be calculated using the actual import cost of the relevant Pakistan State Oil (PSO) cargo.
If the latest cargo cost is unavailable, authorities will use the premiums, incidentals and customs duty of the last available shipment.
Refineries have been allowed to calculate ex-refinery petrol prices for 30 days using pre-war premiums, incidentals and customs duty applicable on March 7, 2026. The difference between import and ex-refinery prices will be surrendered under the Petroleum Levy account and passed on to consumers through lower petrol prices.
The mechanism covers six refineries, which must submit daily sales and pricing reports to OGRA and the Petroleum Division for verification and reconciliation.
