# Refineries to absorb Rs 15 a litre on petrol, about Rs 15 billion a month, govt says

Source: Searchable (https://searchable.pk/news/economy/refineries-to-absorb-rs-15-a-litre-on-petrol-about-rs-15-billion-a-month-govt)
Type: News article
Author: Searchable Editorial
Published: 2 Nov 2026
Updated: 2 Nov 2026
Retrieved: 2 Nov 2026

> The Rs 15 rise that was due on Friday was held back because refineries agreed to carry it. Here is what that saves you on a tank, and what the minister said about deregulation.

Petrol in Pakistan is being sold **Rs 15 a litre cheaper** than the international market would dictate because the country's oil refineries have agreed to absorb the difference, a burden of roughly **Rs 15 billion a month**, Petroleum Minister **Ali Pervaiz Malik** said in Islamabad on Monday, 2 November 2026.

He spoke at a press conference with Information Minister **Attaullah Tarar**, carried live by PTV News and reported by [Dawn](https://www.dawn.com/news/2041627/govt-enlists-oil-refineries-to-shield-citizens-from-global-price-hikes).

## What the government announced

- A rise of **about Rs 15 a litre** in the petrol price was due to take effect on **Friday**. It did not happen because refineries agreed to take the hit, Malik said.
- The refineries' combined cost is put at **about Rs 15 billion a month**.
- Before the Middle East crisis, refinery premiums were about **$5 a barrel**; a **$20 a barrel ceiling** now applies, the minister said.
- Malik said the refineries had earned well over the last three months by raising throughput at the government's request, and were asked to give some of that back to consumers.

## What it means for your tank

At Rs 15 a litre, the saving is **Rs 600 on a 40-litre car tank** and **Rs 150 on a 10-litre motorcycle fill**, compared with what a full pass-through would have cost. The PSO ex-depot Karachi petrol price on our [petrol price page](/data/petrol-price) reads **Rs 377.91 a litre** on 2 November; work out your own monthly bill with the [fuel cost calculator](/tools/cars/fuel-cost-calculator).

The relief is not a price cut: it stops an increase. If world prices keep rising, the minister said, the government would have to step in again.

## The SMS fuel subsidy

Tarar said **more than 15 million** unique users have registered for the SMS-based fuel relief scheme, under which:

- motorcycle owners get a **Rs 500 weekly concession** on petrol, and
- owners of **800cc cars** get **10 litres every 10 days at Rs 100 a litre less**.

About **Rs 27 billion** has been allocated to the scheme so far, he said.

## Deregulation on hold

Asked about the plan to deregulate fuel prices, Malik called himself "the biggest advocate for deregulation" but said the government would return to it only once the regional crisis ends. For now, he said, the focus is public relief.

## What to watch

The government has not said how long the arrangement will last. US crude fell below $100 a barrel on Monday on reports of US-Iran diplomatic efforts, [CNBC reported](https://www.cnbc.com/2026/11/02/oil-prices-fall-as-iran-us-pursue-diplomacy.html), which, if it holds, would ease the pressure on both the refineries and the government. We will update the [petrol price page](/data/petrol-price) the moment a new notification is issued.

## Frequently asked questions

**Why did the petrol price not go up on Friday?**

The government says refineries agreed to absorb an increase of about Rs 15 a litre, costing them roughly Rs 15 billion a month.

**Who qualifies for the petrol subsidy by SMS?**

Motorcycle owners get Rs 500 a week, and 800cc car owners get 10 litres every 10 days at Rs 100 a litre less, after registering by SMS.

## Sources

- Govt enlists oil refineries to shield citizens from global price hikes (Dawn): https://www.dawn.com/news/2041627/govt-enlists-oil-refineries-to-shield-citizens-from-global-price-hikes
- U.S. crude falls below $100 amid reports of U.S.-Iran diplomatic efforts (CNBC): https://www.cnbc.com/2026/11/02/oil-prices-fall-as-iran-us-pursue-diplomacy.html

How to cite: "Refineries to absorb Rs 15 a litre on petrol, about Rs 15 billion a month, govt says", Searchable, 2 Nov 2026, https://searchable.pk/news/economy/refineries-to-absorb-rs-15-a-litre-on-petrol-about-rs-15-billion-a-month-govt