ISLAMABAD: The federal government has revised petroleum prices, increasing the price of petrol by Rs4.45 per litre while reducing the cost of high-speed diesel (HSD) by Rs2 per litre, according to a notification issued by the Petroleum Division.
Following the latest adjustment, petrol will now retail at Rs333.10 per litre, whereas high-speed diesel will cost Rs383.86 per litre.
The government has also increased the petroleum levy on diesel by Rs1.44, taking it from Rs70.86 to Rs72.26 per litre.
Meanwhile, the federal cabinet has approved a new oil refining policy aimed at strengthening Pakistan’s energy sector by reducing dependence on imported fuels and expanding local production capacity.
The policy is expected to attract nearly $6 billion in investment and was prepared in consultation with key stakeholders, including the Special Investment Facilitation Council (SIFC).
Under the new framework, refineries will be encouraged to modernise their facilities, increase production of petrol and diesel, improve fuel quality to Euro-5 standards, and significantly cut furnace oil output. To support these upgrades, the government will offer a seven-year incentive package.
Refineries will be required to sign implementation agreements with the Oil and Gas Regulatory Authority (OGRA) within 90 days of the policy’s approval. The framework also safeguards investors by offering protection against future changes in taxation, environmental regulations, and foreign exchange policies.
In addition, refinery operators will be allowed to maintain foreign currency accounts to meet external debt obligations and will be required to hold strategic crude oil reserves equal to 14 days of supply. Facilities using imported crude will have to maintain an additional five-day reserve.
Existing refineries must forgo previous incentive schemes and clear all outstanding Petroleum Levy and Climate Support Levy dues before qualifying for the new package.
The policy also proposes a 10% regulatory duty on imported petrol and diesel and introduces legally binding upgrade agreements with OGRA to enhance monitoring, accountability, and timely implementation of refinery modernisation projects.
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