Refinery Petrol Price Freeze Set for 30 Days
The government has moved to bring down fuel prices by freezing the price at which local refineries sell petrol for the next 30 days. The refinery petrol price freeze sets the ex-refinery price of motor spirit at its level of March 7, 2026, and any extra amount earned above that level will go to the government to reduce the petroleum levy.
Sources told ProPakistani that the step is set out in a Petroleum Division letter dated October 30. Under the arrangement, premiums, incidental charges, and customs duty in the ex-refinery petrol price will also stay frozen at their March 7 levels for the same 30 days. The import price used in the calculation will be based on Pakistan State Oil’s actual import cost.
The move matters because it decides who carries the cost when imported petrol gets dearer. Instead of passing the full increase to motorists at the pump, the government is taking the extra amount from refineries and using it to hold down the levy. The question for consumers is how much of that relief reaches the pump, and how soon.
Refinery petrol price freeze: how the mechanism works
Refineries must deposit the difference between the frozen price and the actual import-based price into the petroleum levy account. They must also share daily petrol sales data and payment receipts with the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA) for verification. That daily reporting is meant to keep the calculation open to checks, rather than leaving it to a monthly settlement.
Sources said the mechanism will take about Rs49 per litre from refineries. Topline Securities estimates the burden at Rs10 to Rs15 billion a month. The size of that figure explains why the arrangement runs for only 30 days at first, after which the government will decide whether to extend it.
The arrangement builds directly on the levy adjustment already in force. Feature Pakistan reported that the government cut the petroleum levy on petrol from Rs80 to Rs65.29 per litre, while refineries absorbed a Rs14.71 per litre rise in import costs, in Petrol Levy Cut as Refineries Absorb Rs14.71 a Litre. That report also explained why the per-litre figure for refineries looks larger: local refineries supply about 30 per cent of Pakistan’s petrol, so the cost is spread over a smaller share of total sales.
What the freeze means for motorists
The money recovered from refineries gives the government room to lower the petroleum levy, and with it the price paid at the pump. How much relief reaches consumers will depend on two things: the amount actually collected from refineries, and the government’s next price decision. The freeze alone does not fix a new pump price. It creates fiscal room, and the government still has to use that room in a price notification.
Pakistan now revises fuel prices daily, so any change in the levy or in import costs shows up at the pump faster than it did under the old fortnightly system. Daily sales data and receipts let the Petroleum Division and OGRA track how much has been collected and whether the levy cut it funds is sustainable.
The wider fuel cost picture
Frequently asked questions
What is the refinery petrol price freeze?
It is a 30-day arrangement under which local refineries fix the ex-refinery price of motor spirit petrol at its March 7, 2026 level. Any extra amount earned above that level goes to the government to reduce the petroleum levy.
How long will the freeze last?
The arrangement runs for 30 days from the Petroleum Division letter dated October 30, 2026. After that period, the government will decide whether to extend it.
How much will refineries pay under the mechanism?
Sources put the take at about Rs49 per litre from refineries, while Topline Securities estimates the total burden at Rs10 to Rs15 billion a month.
How are refineries checked under the freeze?
Refineries must deposit the difference into the petroleum levy account and share daily petrol sales data and payment receipts with the Petroleum Division and OGRA for verification.
Will the freeze cut the pump price directly?
Not by itself. It creates room to lower the petroleum levy, but the actual pump price depends on the amount collected and the government’s next price decision.
