Pakistan Cuts Fuel Prices and Approves New Refining Policy

The Oil and Gas Regulatory Authority reduced prices for petrol and high-speed diesel in Pakistan, effective August 7, 2026. Petrol prices fell by Rs3.19 per litre to Rs329.82, and high-speed diesel decreased by Rs1.50 per litre to Rs382.36. These rates will remain in effect until the next fortnightly review.

Concurrent with the price cuts, the Government of Pakistan approved a new oil refining policy designed to attract approximately $6 billion in investment. The initiative aims to reduce the nation's reliance on imported fuel by modernizing refineries and increasing the domestic production of Euro 5-compliant fuel.

Under the new policy, refineries are required to maintain strategic crude oil reserves of at least 14 days. To access new incentive packages, refinery operators must settle all outstanding levy payments and sign implementation agreements with the regulatory authority within 90 days.