ISLAMABAD: The Oil Companies Advisory Council (OCAC) has called on the government to ensure consistency in fuel pricing policies and immediately notify the pending Rs1.22 per litre increase in margins of oil marketing companies (OMCs).
In a letter to Petroleum Minister Ali Pervaiz Malik, the OCAC chairman expressed deep concern over repeated changes to the High-Speed Diesel (HSD) pricing mechanism in recent months, the latest of which was introduced on August 20, 2026.
The OCAC also referred to reports that the government is contemplating another intervention in the HSD pricing mechanism. According to the industry, the proposed measure would reduce the HSD crack ceiling from USD 41.89 per barrel to USD 30 per barrel, potentially resulting in a further reduction of around Rs18-20 per litre in the HSD price.
According to OMCs, the existing HSD pricing mechanism does not reflect the premium currently prevailing in the market. The Aramco premium for October stands at minus USD 2 per barrel, which is the same premium reflected in the existing HSD pricing formula, whereas cargoes are reportedly being offered and booked at premiums ranging between USD 15 and USD 20 per barrel.
The industry said this was creating significant challenges for refineries in booking October cargoes, warning that any abrupt reduction in the HSD price could make the booking of high-premium cargoes uneconomical.
“This could force refineries to reduce throughput instead of increasing it in anticipation of seasonal demand,” the OCAC chairman said.
The industry further argued that it had consistently supported the government during challenging periods and could not reasonably be expected to repeatedly absorb the financial cost of policy interventions.
Copyright Business Recorder, 2026
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