Diesel prices fell by Rs7.69 per litre on 19 October after oil refineries agreed to cut their margins on high-speed diesel by $3.9 per barrel. Minister for Petroleum Ali Pervaiz Malik held consultations with the management of five refineries to reach this agreement.
The participating companies include Attock Refinery, National Refinery, Cnergyico Pk, Pakistan Refinery, and Pak-Arab Refinery. The federal cabinet approved a revised pricing formula for high-speed diesel, setting the maximum allowable refinery crack at $38 per barrel.
A minimum floor for the refinery crack is maintained at $11.33 per barrel. The Petroleum Division issued an official communication to the Oil and Gas Regulatory Authority on 19 October stating that the maximum diesel crack will be determined by the average crack spread over the preceding seven working days.
Officials confirmed the federal cabinet approved the continuation of the revised crude-based pricing mechanism for three months. The Petroleum Division noted the arrangement may be reviewed earlier if geopolitical conditions improve and international petroleum prices drop sharply.
Cnergyico Pk vice chairman stated, "The refining sector has played an unprecedented role throughout this crisis, something no other industry has done in the past. Whether it is providing price relief to consumers, supplying discounted fuel for Hajj flights or supporting our defence forces through fuel supplies at reduced prices, the refineries have stepped forward in the national interest."
