Pakistan revises petrol pricing formula again: refineries to hold petrol at 7 March level for 30 days

Pakistan has changed the way petrol prices are worked out for refineries, ARY News reported on Sunday 1 November, citing well-placed sources. The Petroleum Division has sent the new formula to oil refineries after cabinet approval.

What the new mechanism says

• The import price of petrol will be based on the actual cost of Pakistan State Oil's imported cargo. If that is unavailable, the premium and extra costs of the last imported cargo can be used.
• Refineries may keep petrol prices at the 7 March 2026 level for the next 30 days. Premiums, additional expenses and customs duties also stay at 7 March levels.
• Any difference between the import price and the ex-refinery price is paid by refineries into the petroleum levy.
• The benefit of any levy adjustment is to go only to petrol consumers, which could mean lower petrol prices.
• Refineries must send daily petrol sales details, with CPRs and payment challans, to the Petroleum Division and OGRA, who will verify the extra levy payments.

How we got here

Before the Iran conflict, prices were revised every 15 days. The government moved to a weekly schedule on 28 February and then to daily reviews. This is the latest change to that system, as the government tries to manage swings in oil markets.

What it means at the pump

Nothing changes at the pump from this report alone. Petrol stood unchanged at Rs 377.91 in the latest announcement, when the levy was cut by Rs 14.71. Track the PSO ex-depot Karachi reading on the petrol price page, and work out what a tank costs with the fuel cost calculator using the OGRA-notified retail price.

These details come from unnamed sources and a Petroleum Division letter that we have not seen. We will update the story when OGRA or the Petroleum Division publishes the notification.