- September 9, 2026
- Posted by: Tresmark
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The Oil Companies Advisory Council (OCAC) has urged the government to ensure stability in fuel pricing policies and immediately notify the pending Rs1.22 per litre increase in oil marketing companies’ (OMCs) margins.
In a letter addressed to Petroleum Minister Ali Pervaiz Malik, the OCAC chairman expressed concern over repeated changes to the High-Speed Diesel (HSD) pricing mechanism, including the latest adjustment introduced on August 20, 2026.
The industry body also referred to reports that the government is considering another change to the HSD pricing formula. Under the proposed move, the HSD crack ceiling could be reduced from $41.89 per barrel to $30 per barrel, which could potentially lower the retail price of HSD by around Rs18-20 per litre.
According to OMCs, the current HSD pricing mechanism does not accurately reflect prevailing market premiums. The Aramco premium for October cargoes is currently minus $2 per barrel, matching the premium incorporated into the existing pricing formula. However, market cargoes are reportedly being offered and booked at significantly higher premiums of $15-$20 per barrel.
The industry warned that the widening gap between the pricing formula and actual market premiums is creating difficulties for refineries in securing October cargoes.
The OCAC cautioned that an abrupt reduction in the HSD price could make the purchase of high-premium cargoes economically unviable for refineries.
According to the council, this situation could prompt refineries to reduce production throughput rather than increase it ahead of expected seasonal demand.
The industry further maintained that oil companies have repeatedly supported the government during difficult market conditions and should not be expected to continually absorb the financial impact of policy interventions.
The OCAC has therefore called for greater consistency in fuel pricing decisions and the immediate implementation of the pending margin adjustment for OMCs.
