ISLAMABAD – Pakistani government and the country’s oil industry are at odds after the latest reduction in petroleum prices, with Oil Marketing Companies (OMCs) and refineries accusing Oil and Gas Regulatory Authority (OGRA) of serious miscalculations in the pricing formula.
According to industry stakeholders, OGRA allegedly failed to accurately account for international fuel premiums and Platts benchmark averages during the latest fortnightly price review. The industry claims the error resulted in an excessive reduction of nearly Rs. 45 per litre in high-speed diesel prices and Rs. 11 per litre in petrol prices.
OMCs and refineries argue that the regulator did not fully incorporate the actual premium costs and the applicable average Platts rates used to determine import pricing. They contend that the alleged miscalculation has imposed a significant financial burden on the downstream oil sector.
The dispute intensified tensions between the government and the petroleum industry, raising fresh questions over the transparency and accuracy of Pakistan’s fuel pricing mechanism. While the industry is demanding that the calculations be reviewed, no official response has yet been issued addressing the allegations.
The controversy could trigger renewed scrutiny of OGRA’s pricing methodology and deepen the standoff between regulators and the country’s oil sector. The allegations are those of OMCs and refineries. They have not been independently verified, and OGRA has not publicly responded to the claims at the time of writing.
Pakistanis may receive another reduction in petroleum prices, with sources saying OGRA proposed a cut of Rs20-50 per litre amid falling global crude oil prices. The summary has been sent to the prime minister for final approval. The expected relief comes after last week’s sharp reduction of up to Rs74 per litre, with continued weakness in international oil markets supporting the case for another price cut.
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