Petrol buyers get Rs14.71 a litre relief as refineries told to surrender war-time premium
The government has capped the war-time premium local refineries charged on petrol and moved the difference into the petroleum levy, cutting the levy charged to fuel companies by Rs14.71 a litre for 30 days.
The federal government has ordered Pakistan's six local refineries to give up the extra "war-time premium" they were earning on petrol, a move that gives consumers Rs14.71 per litre in relief, The Nation reported on 2 November.
What changed
During the Iran-US conflict, the premium on imported petrol cargoes rose sharply. Local refineries were allowed to price the petrol they made at home at the same import-parity level, so they earned the higher premium without paying the extra cost of importing.
The Federal Cabinet approved a revised pricing mechanism that caps the premium at its 7 March 2026 (pre-war) level. The difference now goes to the government as petroleum levy instead of to the refineries.
| Item | Figure |
|---|---|
| Amount refineries must surrender | Rs49.02 per litre |
| Relief in the levy charged to fuel companies | Rs14.71 per litre |
| Petroleum levy before the change | Rs80 per litre |
| Levy charged to fuel companies after it | Rs65.29 per litre |
| Start date | 31 October 2026 |
| Duration | 30 days |
The directive covers Pak-Arab Refinery, Pakistan Refinery, Attock Refinery, National Refinery, Cnergyico and ENAR. According to the report, the refineries resisted the move. Their profits rose to about Rs57 billion in July-September 2026, from Rs2.9 billion a year earlier.
Current pump prices
Under the rates OGRA notified for 31 October to 2 November, petrol stayed at Rs377.91 a litre and diesel rose by Rs2.29 to Rs402.96, The News reported. OGRA now reviews prices daily on a rolling seven-day average of world prices, and Friday's rates stay fixed over the weekend.
What it means for you
- The relief works on the levy side, so it may not show up as a one-time cut at the pump. Watch OGRA's daily notifications for the retail price.
- For businesses with delivery vans or generators, diesel - not petrol - is the bigger cost, and it is still rising.
- The arrangement is temporary for 30 days, so the levy could change again at the end of November.
Sources
- The Nation - Consumers getting Rs14.71 relief as govt orders refineries to surrender extra war-time premium
- The News - Petroleum rates in Pakistan today
We check every story against the sources above and write it in our own words. Spotted a mistake? Report a correction.
