Pakistan Cuts Petrol Price by Rs0.75 per Litre, Raises Diesel by Rs2.24; Approves New Oil Refining Policy

ISLAMABAD: The federal government has announced revised petroleum prices, reducing the price of petrol by Rs0.75 per litre while increasing the price of high-speed diesel by Rs2.24 per litre.

According to a notification issued by the Petroleum Division, the new price of petrol has been set at Rs336.06 per litre, while high-speed diesel (HSD) will now cost Rs390.62 per litre.

The revised prices will take effect from midnight.

Meanwhile, the government has also approved a new Oil Refining Policy aimed at attracting investment in Pakistan’s energy sector and reducing reliance on imported fuels.

Under the policy, the government expects to facilitate approximately $6 billion in investment. The initiative seeks to increase domestic production of petrol and high-speed diesel, modernize existing oil refineries, significantly reduce furnace oil production, and ensure the manufacture of fuels that meet international quality standards.

Media reports said the policy was formulated after consultations with the Special Investment Facilitation Council (SIFC), the Oil and Gas Regulatory Authority (OGRA), and other relevant stakeholders.

The government believes the policy will strengthen Pakistan’s energy self-sufficiency while reducing the country’s foreign exchange spending on imported petroleum products.

Under the new framework, refineries will receive a seven-year incentive package to upgrade their facilities for the production of Euro-5 standard fuels. In addition, all refinery operators will be required to sign legally binding agreements with OGRA within 90 days of the policy’s approval to ensure effective monitoring, transparency, and timely completion of refinery upgrade projects.

The policy also includes a range of measures designed to encourage greater foreign investment in Pakistan’s oil refining sector.