Govt proposes refinery policy amendments to boost domestic diesel production

July 14, 2026 (MLN): The government has proposed amendments to the Refinery Policy aimed at increasing domestic diesel production and reducing reliance on imported diesel, a move expected to strengthen the country's energy security.

This was stated by Federal Minister for Petroleum Ali Pervaiz Malik while chairing the fourth meeting of the Committee constituted by the Prime Minister to review the petroleum pricing mechanism, where members reviewed international best practices and prevailing market conditions, said a press release issued.

The minister said the committee's work had assumed greater significance in view of the renewed closure of the Strait of Hormuz and the resulting uncertainty in global energy markets.

Citing a KPMG study, he noted that petrol prices in Pakistan remain lower than in Bangladesh, Sri Lanka and Türkiye, while being broadly comparable to those in India.

As an immediate step, the committee recommended that OGRA publish daily Platts pricing data on its website so that the public has access to the benchmark used for petroleum pricing in Pakistan.

The committee agreed that the recently established Petroleum Price Stabilization Fund should operate under a fully rule-based framework, with clearly defined mechanisms for both funding and disbursements, ensuring that its operation remains transparent and free from arbitrary decision-making.

All members stressed the need for digitization of the oil supply chain.

The minister directed that the next meeting would be the committee's final one, after which its recommendations would be submitted to the Prime Minister for consideration.

The meeting was attended by Federal Minister for Economic Affairs Ahad Khan Cheema, Minister of State for Finance Bilal Azhar Kayani, OGRA Chairman Nabeel Awan, the KPMG team, other committee members, representatives of the Finance Division, and senior officials from OGRA, Pakistan State Oil (PSO), the Ministry of Law and Justice, and the Petroleum Division.

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