Pakistan’s refineries continue to post strong profits despite recent changes in the petroleum pricing system, according to Beyond Time News.
An analysis of March and April 2026 data shows that a gap between international diesel benchmarks and crude oil prices allowed refineries to earn higher-than-normal margins.
Pricing Gap Boosted Earnings
Under Pakistan’s pricing framework, fuel rates are linked to global benchmarks, while refineries receive margins based on these indicators.
In March 2026, diesel prices remained well above crude oil benchmarks, creating an unusually wide gap that increased refinery earnings.
Shift to Cost-Plus Formula
In April, the government moved from an import parity system to a cost-plus pricing model for diesel in an attempt to control margins.
The revised structure links prices to Dubai crude with a fixed margin. However, industry sources say the change only partially narrowed the gap.
Profits Still Elevated
Despite the revision, diesel prices reportedly remained higher than benchmark levels, allowing refineries to continue earning additional margins.
Refinery financial results for January–March 2026 also show a sharp rise in profits, largely linked to stronger diesel margins.
Petrol and Diesel Prices Jump by Rs26.77 Per Litre in Pakistan
Calls for Further Adjustment
Experts are urging a more transparent pricing mechanism aligned with global oil benchmarks to prevent excess margins and reduce pressure on consumers.
Conclusion
The petroleum pricing system remains under scrutiny as refinery earnings stay elevated despite reforms, highlighting the need for further adjustments to ensure fair pricing, according to Beyond Time News.
