ISLAMABAD: Pakistan has managed to keep petrol prices around Rs15 per litre below international market rates despite rising global fuel import costs triggered by the US-Iran conflict, Petroleum Minister Ali Pervaiz Malik said on Monday, crediting local refineries for absorbing part of the financial burden under a revised pricing mechanism.
The minister said regional tensions had driven up the cost of importing petroleum products, with petrol premiums rising sharply alongside freight, insurance and other logistical expenses.
ریفائنریز پر تقریباً 15 ارب روپے کا بوجھ آئے گا، جس سے ہم پٹرول 15 روپے سستا فراہم کر پائیں گے، علی پرویز ملک https://t.co/7PqvT2yTWk
— WE News (@WENewsPk) November 2, 2026
Speaking about the government’s revised fuel pricing mechanism, Malik said the premium on petrol had increased from approximately $5 per barrel before the conflict to around $20 per barrel afterward.
He added that subsequent Pakistan State Oil (PSO) tenders showed premiums climbing further to between $25 and $30 per barrel, and even higher as regional conditions deteriorated.
The petroleum minister said the government had engaged local refineries to minimise the impact of rising international prices on consumers while ensuring that imported fuel remained commercially viable and domestic supplies were not disrupted.
According to Malik, approximately 70% of Pakistan’s petrol requirements are met through imports, while local refineries supply the remaining 30%.
He said the government had sought cooperation from refineries to absorb an expected Rs15 per litre increase in petrol prices that was due on Friday.
“I am grateful that they listened to our appeal and absorbed roughly a Rs15 increase that was coming due for petrol on Friday, helping the government maintain prices,” Malik said.
He estimated that local refineries were bearing a financial burden of approximately Rs15 billion per month under the arrangement, allowing petrol prices to remain around Rs15 per litre below international market levels.
ریفائنریز نے بہت منافع کمایا،ریفائنریز کا 3 ماہ کا منافع پورے ایک سال سے زیادہ تھا,جمعےکو پیٹرول 15 روپے لیٹر مہنگا ہونا تھا، وزیراعظم کی ہدایت پر بوجھ ریفائنریز پرمنتقل کر دیاگیا،علی پرویزملک
#petroleumprice #Alipervaizmalik https://t.co/x2lPOIxsJZ— Munazer Ali (@ali_munazer) November 2, 2026
Malik expressed optimism that declining international petroleum prices would provide further relief to consumers in the coming days.
How the revised petrol pricing mechanism works
The federal cabinet approved changes to the petrol pricing mechanism on October 30 to address volatility in international oil markets following the US-Iran conflict.
Under the revised arrangement:
- Petrol import prices are calculated using the actual import cost of the relevant PSO cargo.
- If the latest cargo cost is unavailable for daily price determination, the premium, incidental expenses and customs duty of the last available cargo are used.
- For local refineries, the premium, incidentals and customs duty used in calculating ex-refinery petrol prices have temporarily been fixed at their March 7, 2026, pre-war levels for 30 days.
- Refineries are required to surrender the difference between the import price and the resulting ex-refinery price under the petroleum levy account, with the benefit passed on to consumers through a corresponding reduction in petrol prices.
- A short-term adjustment mechanism has also been introduced, incorporating the benefit of the premium differential into petrol prices at a rate of $2.950 per barrel per day.
Government rules out fuel shortage
Separately, Information Minister Attaullah Tarar said Pakistan was not facing a fuel shortage and that national requirements were being met.
Read Also: Pakistan Approves Rs75bn Fuel Relief Package Amid Rising Petroleum Prices
Petroleum Minister Malik also rejected reports suggesting that liquefied petroleum gas (LPG) prices had surged to Rs700 per kilogramme.
Regarding natural gas supplies, he said arrangements for November had already been finalised, while the government was working to secure supplies for December and January.
