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

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.

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 reads Rs 377.91 a litre on 2 November; work out your own monthly bill with the 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, which, if it holds, would ease the pressure on both the refineries and the government. We will update the petrol price page the moment a new notification is issued.