The government is considering a reduction of Rs10 to Rs15 per litre in the petroleum levy.
Under the new formula, oil refineries will also contribute to the Petroleum Development Levy (PDL), aiming to reduce the levy burden on consumers.
The new mechanism could lead to a reduction of Rs10 to Rs15 per litre in the levy. However, the formula could also result in losses of more than Rs30 per litre for oil refineries.
Under the government’s formula, oil refineries will be allowed to maintain the ex-refinery price of petrol at the March 7, 2026 level for the next 30 days. Premiums, additional costs and customs duties will also remain at the same levels.
In this regard, the Petroleum Division has sent official letters to all oil refineries, directing them to submit daily petrol sales details to the Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division.
On Friday, the federal cabinet approved a proposal to determine petrol’s import price based on the actual import cost of the relevant Pakistan State Oil (PSO) cargo.
However, the government has yet to issue an official notification regarding the proposed reduction in the petroleum levy. Therefore, the possible Rs10 to Rs15 per litre reduction is not yet confirmed.
Current petrol price in Pakistan
As of November 1, 2026, petrol is priced at Rs377.91 per litre in Pakistan. The current price of High-Speed Diesel (HSD) / Hi-Cetane Diesel Euro 5 in Pakistan is Rs 402.96 per litre.
