Pakistan refineries agree to slash diesel margins by another $3.9/barrel to lower fuel prices

Pakistan’s five refineries have agreed to cut high-speed diesel margins by a further $3.9 per barrel, contributing to a Rs7.69-per-litre price reduction on October 19, 2026. Profit by Pakistan Today reported that the concession followed talks between Petroleum Minister Ali Pervaiz Malik and refinery management, and was approved alongside changes to the diesel pricing formula.

Under the revised formula, the maximum refinery diesel crack is capped at $38 per barrel, while the minimum remains $11.33. The maximum will be assessed using the average crack spread over the previous seven working days, and the crude-based pricing mechanism will continue for three months, with an earlier review possible if geopolitical conditions improve and international petroleum prices fall sharply. Cnergyico’s vice chairman said the industry’s finances remain under pressure because the formula does not fully reflect crude procurement costs.