ISLAMABAD: Pakistan has once again revised the mechanism for determining petroleum product prices amid escalating tensions between Iran and the United States, ARY News reported on Sunday, citing well-placed sources.
The Petroleum Division has issued a new pricing formula to oil refineries following cabinet approval.
According to sources, under the revised mechanism, the import price of petrol will be calculated based on the actual cost of Pakistan State Oil’s (PSO) imported cargo. In cases where the actual cost is unavailable, the premium and additional expenses of the last imported cargo may be used as an alternative basis.
The sources said refineries would be allowed to maintain petrol prices at the March 7, 2026 level for the next 30 days. Premiums, additional expenses and customs duties will also remain at the levels applicable on March 7.
Under the new arrangement, any difference between the import price and ex-refinery price will be deposited by refineries under the petroleum levy.
The benefit of any adjustment in the petroleum levy will be passed on exclusively to petrol consumers, potentially resulting in a reduction in petrol prices.
The Petroleum Division has formally communicated the revised instructions to all oil refineries through official letters. Refineries have been directed to submit daily petrol sales details to both the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA).
Read more: OGRA announces latest petrol price, diesel rate
They will also be required to provide daily sales reports along with CPRs and payment challans. OGRA and the Petroleum Division will verify the additional levy payments and related calculations to ensure compliance with the revised mechanism.
Before the outbreak of the Iran conflict, Pakistan followed a fortnightly system for revising petroleum prices, with adjustments made every 15 days.
However, following the reported start of the conflict on February 28, the government shifted to a weekly pricing schedule on February 28.
Subsequently, the mechanism was changed again, with petroleum prices being reviewed and adjusted on a daily basis.
The latest revision introduces another change to the pricing mechanism as the government seeks to manage fluctuations in international oil markets amid regional tensions.
