Day: September 5, 2026

Refining Industry Warns Fuel Pricing Changes Could Threaten Billions in Upgrades

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ISLAMABAD: Pakistan’s latest moves to revise the petroleum pricing mechanism have triggered concern in the refining industry, with executives warning that repeated changes to refinery economics could weaken cash flows, undermine investor confidence and jeopardise billions of dollars in planned modernisation projects. Sources familiar with the proceedings said KPMG proposed at a September 2 Pricing Committee meeting to further reduce the high-speed diesel (HSD) crack-spread cap, currently around $41.8 per barrel. The proposal has raised concerns among refiners, particularly because the government has already modified various elements of the petroleum…

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Pakistan Rejects $26.71 LNG Bid Amid Rising Global Prices

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ISLAMABAD: Pakistan has once again rejected a spot LNG cargo offered by BP Singapore at $26.7128 per MMBtu, as soaring international prices and heightened shipping risks around the Strait of Hormuz make spot procurement increasingly expensive. The offer, submitted for delivery from September 8–12, was the lowest of two bids received by Pakistan LNG Limited (PLL). PetroChina quoted $26.98 per MMBtu. The PLL Board had earlier rejected another BP Singapore bid of $26.969 per MMBtu for the September 4–8 delivery window, citing the high cost. “Obviously, the Friday bid of…

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Diesel Price May Fall by Up to Rs20 per Litre as Government Cuts HSD Crack Spread

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Petrol-Diesel

ISLAMABAD: The government is considering a further reduction in the high-speed diesel (HSD) crack spread from $41.8 to $30 per barrel, a move that could lower the retail price of diesel by around Rs18–20 per litre in one go. Under the proposed mechanism, the HSD crack spread would be linked to the landed cost of crude oil for each refinery. The arrangement would remain in effect until the crisis surrounding the Strait of Hormuz eases, according to a senior Petroleum Division official. The government had previously reduced the HSD price…

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Refinery Upgrade Delays Cost Pakistan $1.5 Billion Annually

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ISLAMABAD: Pakistan’s long-delayed refinery modernisation programme is facing yet another setback, with upgrade agreements still awaiting finalisation despite the government’s approval of the amended policy, potentially costing the country around $1.5 billion annually in additional petroleum imports. The agreements with Inter State Gas Systems (ISGS) were expected to be signed by the end of August, but government formalities remain incomplete, raising fresh concerns about the implementation of a refinery upgrade programme that has been under discussion since 2019. The Brownfield Refineries Upgradation Policy, initially approved in August 2023 and amended…

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PPP Blocks Two Gas Revenue Bills Amid Growing Rift with Government

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ISLAMABAD: The Pakistan Peoples Party (PPP) on Friday blocked parliamentary proceedings on two government bills seeking amendments to natural gas revenue mechanisms, amid growing tensions within the ruling coalition over the recent Azad Jammu and Kashmir (AJK) elections, judicial appointments and proposals for the creation of new provinces. The development came during a meeting of the National Assembly Standing Committee on Petroleum, chaired by PPP lawmaker Syed Mustafa Mehmood, where former federal minister Syed Naveed Qamar asked the committee at the outset not to take up the Natural Gas (Development…

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