ISLAMABAD: The Petroleum Division has revised the pricing mechanism for petrol amid the Iran-US tensions, directing oil refineries to follow a new formula in line with the Federal Cabinet’s decision.
The Petroleum Division has written letters to refineries in this regard, following the directives of the federal cabinet.
The cabinet on Friday approved that the import price of petrol may be determined on the basis of the actual import cost of the relevant Pakistan State Oil (PSO) cargo. Where the actual import cost is unavailable for daily pricing, the premium, incidentals and customs duty of the last available cargo may be used to determine the import price.
The refineries will be entitled to an ex-refinery price of petrol calculated by fixing the premium, incidentals and customs duty at the levels prevailing on March 7, 2026 (pre-war), for the next 30 days.
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The difference between the import price determined under the first provision and the ex-refinery price determined under the second provision shall be surrendered by the refineries under the Petroleum Levy head of account C03901.
The resulting benefit from the adjustment in the Petroleum Levy will be passed on to motor spirit (MS) consumers only through a corresponding reduction in the price of petrol.
To implement the above decision, all refineries have been advised to deposit the differential Petroleum Levy, as specified in the OGRA price notification and Petroleum Levy notification issued from time to time.
The refineries will also be required to submit daily reports of domestic MS sales, along with CPRs/challans, to the Petroleum Division and OGRA for necessary verification and reconciliation.
Copyright Business Recorder, 2026
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