Refineries to Bear Rs15bn a Month to Shield Petrol Prices
A petrol price shield worth about Rs15 billion a month will keep petrol Rs15 a litre cheaper than the international market level, the government announced in Islamabad on Monday, November 2, 2026. Petroleum Minister Ali Pervaiz Malik and Information Minister Attaullah Tarar gave the details at a press conference, as war in the Middle East pushes global oil prices higher.
Malik said the prime minister had met refineries and consulted them on steps to protect consumers. The refineries had raised their throughput, he said, and had earned profits from that higher output over the past three months. The government then asked them to stand with the public during a difficult period, and they agreed.
Petrol price shield: how the Rs15 saving works
The saving is straightforward. A refinery burden of about Rs15 billion a month allows petrol to sell at a rate Rs15 a litre below what the international market would imply. For a driver, that gap is worth Rs600 on a 40-litre fill and Rs750 on a 50-litre fill, by simple multiplication of the Rs15 figure. Those tank figures are arithmetic from the announced rate, not a separate official estimate.
Malik said a Rs15 rise that had been due on Friday was absorbed with the refineries help, so the price was maintained. He thanked the refineries for listening to the government request and for standing with the public at a time when even the government faced difficulty buying oil at rising prices.
He also set out the background to refinery earnings. Before the crisis, he said, the refineries premium stood at $5 a barrel. He referred to a $20 limit in place now. The press conference did not set out a full breakdown of how that premium figure feeds into the pump price, and this article does not add one.
What the government said next
Malik expressed hope that the Middle East crisis would move towards a peace agreement. He said the government wanted to move ahead with improving the system, deregulation and refinery upgrades. He stressed that the government did not want to act harshly towards anyone, and intended to act with consultation, with the public interest in mind, in a fair way.
He added that the government would have to step in and protect the public if difficulties grew further. That pledge matters because the shield announced on Monday rests on refineries carrying a monthly burden, rather than on a permanent change in taxes or pricing rules. If global prices rise again, the next test will be whether the same arrangement holds, or whether the government takes a further step.
Related Feature Pakistan coverage includes Petrol Pricing Revised to Pass Savings to Drivers, which reported an earlier pricing change for motorists.
What happens next
Drivers will watch the next price decision closely. The Monday announcement explains the current gap between the local price and the international level, but it does not fix the local price for good. Global prices, the exchange rate and the refineries position will all shape what follows.
Refineries will watch the same decision from the other side. A burden of about Rs15 billion a month is large, and the government case rests on their recent higher throughput and profits. If throughput falls, the balance behind the deal could change.
Frequently asked questions
What is the petrol price shield?
The petrol price shield is the arrangement under which refineries bear about Rs15 billion a month, allowing petrol to sell Rs15 a litre below the international market level.
Who announced the petrol price shield?
Petroleum Minister Ali Pervaiz Malik and Information Minister Attaullah Tarar announced it at a press conference in Islamabad on Monday, November 2, 2026.
How much does the shield save a driver?
At Rs15 a litre, the saving is Rs600 on a 40-litre fill and Rs750 on a 50-litre fill, calculated from the announced rate.
Will the shield last permanently?
The government has not described it as permanent. It said it would step in to protect the public if difficulties grew further, and it hopes the Middle East crisis moves towards peace.
