OCAC seeks increase in OMCs’ margins immediately

The Oil Companies Advisory Council (OCAC) has asked the government to keep fuel pricing policies consistent and to notify without delay a pending increase of Rs1.22 per litre in oil marketing company margins, according to Business Recorder. In a letter to Petroleum Minister Ali Pervaiz Malik, the council chairman voiced serious concern about frequent revisions to the high-speed diesel pricing formula, the latest of which took effect on August 20, 2026.

The council also pointed to reports that the government is weighing another change to the HSD pricing mechanism. According to the industry, the proposal would bring the HSD crack ceiling down from USD 41.89 to USD 30 per barrel, which could cut diesel prices by roughly Rs18 to Rs20 per litre. OMCs, however, argue the existing formula does not reflect the market premium, since it uses an Aramco premium of minus USD 2 per barrel for October while cargoes are reportedly being offered at USD 15 to USD 20 per barrel.

The industry cautioned that a sudden drop in diesel prices might make booking high-premium October cargoes uneconomical, which could push refineries to cut throughput rather than lift it ahead of seasonal demand, the council chairman said. The industry added that it had backed the government through difficult periods and should not be asked to keep covering the costs of repeated policy moves.