The government has started taking steps to bring down fuel prices by allowing oil refineries to fix the ex-refinery price of Motor Spirit (MS) petrol at its March 7, 2026 level for the next 30 days, sources told ProPakistani.
Any extra amount refineries earn above that level will be returned to the government, which will use it to reduce the petroleum levy.
How the Mechanism Works
Sources said that under a Petroleum Division letter dated October 30, premiums, incidental charges, and customs duty in the ex-refinery petrol price will stay frozen at their March 7, 2026 levels for 30 days.
The import price will be based on Pakistan State Oil’s actual import cost. Refineries must deposit the difference between the two prices into the petroleum levy account and share daily petrol sales data and payment receipts with the Petroleum Division and OGRA for verification.
Sources said the mechanism will take about Rs. 49 per litre from refineries. Topline Securities estimates the burden at Rs. 10–15 billion a month.
What This Means for You
The money recovered from refineries gives the government room to lower the petroleum levy, and with it the price you pay at the pump. How much relief reaches consumers will depend on the amount collected and the government’s next fortnightly price decision.
The arrangement runs for 30 days, after which the government will decide whether to extend it.
More details will be shared once received.
The post Govt Adopts New Formula to Reduce Petrol Prices appeared first on ProPakistani.
