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ISLAMABAD: Petrol prices in Pakistan could fall by Rs15 per litre under a new government formula for determining petroleum prices, Petroleum Minister Ali Pervaiz Malik has said.<\/strong><\/p>\n Speaking at a press conference alongside the information minister in Islamabad, Ali Pervaiz Malik said the government would be able to provide petrol to consumers at a reduced price of Rs15 per litre with the cooperation of local oil refineries.<\/p>\n He said the government had requested oil refineries to cooperate in providing relief to the public during the difficult situation.<\/p>\n The petroleum minister said petrol prices were due to increase by Rs15 per litre on Friday, but the increase was avoided with the cooperation of refineries.<\/p>\n He added that oil refineries had shared a financial burden of Rs15 billion with the government to prevent the increase.<\/p>\n Ali Pervaiz Malik said local refineries produce around 30 per cent of the country\u2019s petrol and had earned substantial profits. He said the refineries would bear a monthly burden of Rs15 billion under the arrangement.<\/p>\n He added that a meeting with oil refineries would be held on Thursday to discuss all related matters.<\/p>\n Meanwhile, the government has revised the mechanism for determining petroleum prices amid tensions between Iran and the United States, according to sources.<\/p>\n Following cabinet approval, the Petroleum Division has issued a new pricing formula to oil refineries.<\/p>\n Under the revised mechanism, the import price of petrol will be determined based on the actual cost of cargo imported by Pakistan State Oil (PSO).<\/p>\n In case the actual import cost is unavailable, the premium and additional expenses of the last cargo will be used to determine the price.<\/p>\n Sources said refineries would be allowed to fix petrol prices for the next 30 days at the level prevailing on March 7, 2026. They would also be permitted to maintain the premium, additional expenses and customs duty at their March 7 levels.<\/p>\n The difference between the import price and ex-refinery price will be deposited by refineries under the head of petroleum levy.<\/p>\n According to sources, any adjustment in petroleum levy will be passed on exclusively to petrol consumers in the form of a reduction in petrol prices.<\/p>\n The Petroleum Division has formally sent letters to all oil refineries, directing them to provide daily petrol sales details to the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA).<\/p>\n Sources said refineries would also be required to submit daily sales reports along with CPRs and payment challans. OGRA and the Petroleum Division will verify additional levy payments and related calculations.<\/p>\n Before the Iran war, Pakistan followed a fortnightly system for revising petroleum prices. The mechanism was changed to a weekly schedule after the war began on February 28.<\/p>\n Later, the government shifted petroleum price adjustments to a daily basis, a system that remains in place.<\/p>\n<\/div>\nNew petroleum pricing formula<\/strong><\/h2>\n