Refineries to sell petrol 'below cost'

The federal cabinet has ordered refineries to transfer Rs49 per litre to the petroleum levy account, while cutting the levy by Rs14.71 per litre, The Express Tribune reported. Under the revised formula, refinery petrol prices will use premium, incidentals and customs duty fixed at their March 7, 2026 levels for 30 days. Refineries must surrender the gap between that price and the import cost calculated using Pakistan State Oil’s actual costs.

Industry representatives say the requirement could leave refineries selling petrol below cost, without prior consultation. Cnergyico’s vice chairman warned that the change could push its gross refining margins into negative territory, while Attock Refinery CEO Adil Khattak said the decision would add to losses and divert customs-duty proceeds intended to help fund upgrades. Executives also said repeated pricing changes could weaken investment confidence and the financial case for refinery projects.