A revised petrol pricing formula approved by the federal cabinet on October 30 has taken effect from November 2, changing how both imported and locally refined petrol is priced while the Iran–US war disrupts fuel markets.
Under the new mechanism, the import price of petrol — motor spirit — will be set from the actual import cost of the relevant Pakistan State Oil (PSO) cargo. If that cost is unavailable for a day’s pricing, the premium, incidentals and customs duty of the last available cargo will be used instead.
For local refineries, a temporary 30-day arrangement fixes the premium, incidentals and customs duty used to calculate the ex-refinery price at their March 7, 2026 levels, from before the war. Because war-time premiums have risen sharply since then — the PSO premium stood at $25.52 a barrel on October 30, according to The Nation — the ex-refinery price will now sit below the import price, and refineries must deposit the difference into the petroleum levy account (head C03901).
The Oil and Gas Regulatory Authority (OGRA) has directed refineries to surrender Rs49.02 per litre under the revised mechanism. That surrender works out to a contribution of Rs14.71 per litre towards the overall petroleum levy of Rs80 per litre, with the levy itself unchanged; the government says the resulting benefit will reach consumers through a corresponding reduction in the retail petrol price. The Petroleum Division says the October 30 prices were already set under the new formula and that it helped avert a major increase. Refineries must also report daily domestic petrol sales and submit deposit records to the Petroleum Division and OGRA for verification.
The change covers petrol only; pricing parameters for other petroleum products are unchanged. Refineries resisted the move, and the measure is temporary — the frozen pre-war components apply for 30 days — so the arrangement will need revisiting once that window ends.
Sources: The Express Tribune, 2 November 2026 (https://tribune.com.pk/story/2638173/petrol-pricing-revised-to-shield-consumers?amp=1); Geo News, 1 November 2026 (https://www.geo.tv/latest/689276-govt-revises-petrol-pricing-formula-amid-iran-us-war); The Nation, 2 November 2026 (https://www.nation.com.pk/02-Nov-2026/consumers-getting-rs14-71-relief-govt-orders-refineries-surrender-extra-war-time-premium-petrol); PKRevenue, 2 November 2026 (https://pkrevenue.com/pakistan-new-petrol-pricing-formula-november-2026/); Daily Pakistan, 1 November 2026 (https://en.dailypakistan.com.pk/01-Nov-2026/petrol-price-formula-revised-amid-iran-us-war-volatility).
