ISLAMABAD, October 31, 2026 — The government has kept the petrol price unchanged at Rs377.91 per litre through a revised pricing arrangement that could place additional financial pressure on Pakistan’s domestic oil refineries.
The latest fuel price notification, effective October 31, maintains the retail petrol price despite an increase in the calculated cost of supplying the fuel.
The ex-refinery price of petrol rose from Rs267.13 to Rs282.26 per litre, reflecting changes in international pricing and import-related costs.
To prevent the increase from reaching consumers, the pricing calculation includes a Rs14.71-per-litre adjustment to the petroleum levy.
The arrangement is unusual because domestic refineries are expected to surrender an amount through their petrol sales to oil marketing companies, effectively absorbing costs across a smaller share of the market.
According to a preliminary assessment by Topline Research, the mechanism could cost local refineries between Rs10 billion and Rs15 billion per month.
The brokerage’s estimate is based on assumed petrol production volumes and remains subject to clarification.
Meanwhile, the government has increased the price of high-speed diesel by Rs2.29 to Rs402.96 per litre.
The decision provides immediate relief to petrol consumers at a time of elevated international energy prices, but it has raised concerns about the sustainability of the arrangement for domestic refiners.
The longer-term impact will depend on how the mechanism is implemented and whether the government maintains it in future price reviews.